American Eagle Maintains Steady Sales through Q3, Sees 54% Drop in Profits

Amerian Eagle improves its performance. The U.S. company has managed to keep its sales stable through the third quarter of the year, despite the fact that profit continues to fall. Specifically, the company achieved sales of $3.73 billion in the period ended November 1st, 0.3% more than in the same period of the previous year. Profit fell by 53.8% to 1$04 million.

Gross margin worsened: it stood at 36.8%, compared with 40% in the first three quarters of the previous year. Operating income fell by 54.4% to $130.5 million.

By brand, Aerie had the best performance up to November 1st, with a 4.3% increase in sales (to $1.251 billion), while American Eagle’s sales fell by 1.5% (to $2.348 billion).

The better performance in the third quarter of the year has enabled the U.S. company to raise its forecasts for the end of the year. Between August and October, American Eagle increased its revenues by 5.7% compared to the same period in 2024. The increase, driven by Aerie, brought its quarterly revenue to an all-time high of $1.36 billion.

American Eagle has upgraded its guidance for the full year and is targeting an operating profit of up to $308 million

Aerie reported a double-digit increase in sales in the last three months, reaching $462 million, up 12.6% compared to the same period last year. On the other hand, the American Eagle brand, the group’s main concept, increased its quarterly sales by 2.6% to $854 million.

In the third quarter, net income stood at $91.3 million, an increase of 14.2% compared to the same period of the previous year, when it registered $80 million. The company has put the quarterly impact of tariffs imposed by the United States on imports at $20 million.

For the full year, the company has upgraded its guidance and is now targeting an operating income of between $303 million and $308 million, compared to the previous range of $255 million to $265 million, and a low-single-digit improvement in total sales.

American Eagle, which has not been able to avoid tariff effects, expects the approximate cost of these taxes for the full year to amount to $70 million. Of this amount, $50 million will be reflected in the last quarter’s accounts.

Aerie increased its retail network by 14 stores in the first three quarters to 329 stores, while American Eagle closed the period with 830 stores. Together with the 23 Todd Snyder stores and eight Unsubscribed stores, the group ended the third quarter with a network of 1,190 stores.