Fast Company

American Eagle Outfitters stock is soaring today, but maybe thank Aerie for the boost, not Sydney Sweeney

American Eagle Outfitters (AEO) reported a strong third-quarter earnings report, surpassing Wall Street's revenue and earnings per share estimates. While the American Eagle brand saw modest growth, Aerie, AEO's sister brand, significantly contributed to the positive results. Aerie's comparable sales jumped 11% year-over-year, driven by a resurgence in intimates and overall strength across its offerings. The brand's commitment to "100% Aerie real" advertising, avoiding AI-generated bodies, has resonated with consumers. AEO's CEO highlighted a record-breaking Thanksgiving weekend, fueled by increased demand across all brands, especially Aerie and Offline. Consequently, AEO raised its fourth-quarter and full-year operating income guidance, projecting substantial growth. Investors reacted positively, causing American Eagle shares to surge by more than 14% after-hours. The success of Aerie is clearly playing a major role in the overall financial performance of American Eagle Outfitters. Offline, AEO's activewear brand, is also contributing to the company's success.
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