American Eagle Outfitters raised its annual comparable sales forecast on Tuesday, betting on marketing-driven demand for its apparel and accessories during the holiday season, sending its shares up about 15 percent after the bell.
Marketing campaigns and newer collections of clothing, along with a focus on high-earning consumers, have helped the company offset losses from the broader retail slowdown and budget-conscious consumers pulling back on discretionary spending amid inflationary prices and trade-policy-driven uncertainty.
The company has been trying to boost demand through its marketing initiatives, including the “Great Jeans” denim campaign with actress Sydney Sweeney, a tie-up with NFL player Travis Kelce’s clothing brand Tru Kolors, and partnerships with tennis player Coco Gauff and actress Jenna Ortega.
The company sees annual comparable sales rising in the low single digits, compared to its previous expectations of about flat growth.
The company posted quarterly net revenue of $1.36 billion, compared with analysts’ estimates of $1.32 billion, according to data compiled by LSEG.
Quarterly comparable sales rose 4 percent, compared with analysts’ estimates of a 2.4 percent rise. The company sees current quarter comparable sales rising between 8 percent and 9 percent, compared with analysts’ estimates of a 2.2 percent rise.
By Neil J Kanatt
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