American Eagle Outfitters achieves record December sales, boosts Q4 forecast

US-based apparel group American Eagle Outfitters, Inc. (AEO) has announced an upward revision to its fourth quarter financial outlook following a record-breaking holiday trading period. For the quarter-to-date period through January 3, 2026, the company reported that consolidated comparable sales increased by a high single-digit percentage.

The performance was characterised by positive momentum across both digital and physical channels. Aerie, the group’s intimate apparel and lifestyle brand, continued its high-growth trajectory with comparable sales rising in the low twenties. The namesake American Eagle brand also maintained its recovery, posting comp growth in the low single digits.

In light of the strong margin performance and sustained sales trends, AEO Inc has raised its Q4 operating income guidance to a range of 167 million to 170 million dollars. This is a significant increase from the previous forecast of 155 million to 160 million dollars. The group now anticipates consolidated comp sales for the full quarter to grow between 8 percent and 9 percent.

Jay Schottenstein, executive chairman of the board and chief executive officer (CEO) of AEO Inc, noted that December sales reached record levels. He attributed the results to the successful reception of new product collections and marketing initiatives, particularly within the Aerie and Offline by Aerie brands.

The revised guidance incorporates approximately 50 million dollars of anticipated pressure from tariffs. The company has been actively implementing mitigation strategies, including sourcing shifts and pricing adjustments, to manage the impact of import duties on its gross margin.

Management indicated that the sales momentum has continued into the post-holiday period. The group is expected to release its full fourth quarter and fiscal year 2025 results in March 2026.