American Eagle posts strong Q3 driven by Aerie and marketing campaigns

American Eagle Outfitters, Inc. reported strong third-quarter results for the period ended November 1, 2025, delivering record revenue and a marked improvement in profitability as strategic actions across merchandising, marketing and operations gained traction. The company said the momentum was amplified by the success of its recent high-visibility marketing campaigns featuring Sydney Sweeney, Travis Kelce and, most recently, Martha Stewart—each driving sharp increases in engagement, traffic and new customer acquisition.

Third-quarter net revenue rose 6 percent year over year to 1.36 billion dollars, supported by a 4 percent increase in comparable sales. Aerie continued to lead growth, posting an 11 percent rise in comparable sales, while the American Eagle brand delivered a 1 percent increase.

“Record third quarter revenue was highlighted by Aerie’s double-digit comparable sales increase and positive growth at American Eagle, contributing to results that exceeded expectations,” said Jay Schottenstein, executive chairman and CEO. He added that momentum had accelerated into the fourth quarter, with the company posting a “record-breaking Thanksgiving weekend” driven by robust demand across brands and channels.

American Eagle raises outlooks after strong Q3

Gross profit for the quarter grew 5 percent to 552 million dollars, although gross margin slipped by 40 basis points to 40.5 percent, pressured by a 20 million dollars net tariff impact. Operating income increased to 113 million dollars from 106 million dollars a year earlier, or 124 million dollars on an adjusted basis. Diluted earnings per share climbed 29 percent to 53 cents, with adjusted EPS up 10 percent.

On the back of stronger sales trends, AEO raised its fourth-quarter operating income forecast to a range of 155 million dollars to 160 million dollars based on comparable sales in the range of positive 8 percent to 9 percent with similar growth for total revenue. Prior outlook of operating income of 125 to 130 million dollars was based on comparable sales in the positive low single digits.

For the year, adjusted operating income guidance rises to 303 to 308 million dollars, with comparable sales in the low single digits from prior guidance of adjusted operating income of 255 to 265 million dollars on flat comparable sales.

Encouraged by the momentum and the strong start to the holiday season, Schottenstein reiterated that AEO is entering 2026 from a position of strength. “All in all, I’m very pleased with the progress and meaningful turnaround from the first half of this year,” he said, noting that the fourth quarter is off to an “excellent start” with a clear acceleration in performance, including a record Thanksgiving weekend.

American Eagle's marketing campaigns boost sales

The company recently unveiled its latest marketing campaign featuring lifestyle icon Martha Stewart, 84, who appears in head-to-toe denim for the brand’s new “Give Great Jeans” holiday campaign. The announcement follows a high-profile—and controversial—Sydney Sweeney campaign earlier this year.

Despite criticism over its wordplay, the collaboration sold out within a week and drove record traffic and new customer sign-ups. Fashion law expert Susan Scafidi told The Post that Stewart’s selection allows the brand to shift narrative without appearing to capitulate to earlier backlash, while also embracing age diversity.

Schottenstein emphasized the positive impact of latest marketing campaigns. "We are encouraged by the impact of the campaigns and collaborations with Sydney Sweeney and Travis Kelce, and now holiday gifting with Martha Stewart. We see measurable benefits, especially across our digital channels," he said.

He foresees continued long-term growth opportunities across the portfolio, particularly at Aerie and Offline. “At just under $2 billion in revenue and less than 5% market share, this indicates a significant runway for future expansion,” Schottenstein noted. He highlighted sequential improvement in the American Eagle brand, strength in denim, and strong flows of bestsellers and new products at Aerie. Marketing collaborations with Sydney Sweeney, Travis Kelce and now Martha Stewart have delivered “measurable benefits” across digital channels, he said.