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American Eagle Outfitters Sales Up

12/01/2021 04:48 PM ET

American Eagle Outfitters - American Eagle Outfitters Inc. said Wednesday that its third-quarter net income rose 59 percent, helped by a year-ago charge, and the teen retailer said holiday sales were off to a good start.

The Pittsburgh company posted a fourth-quarter guidance that was above Wall Street expectations, and shares rose nearly 6 percent in premarket trading.

American Eagle Outfitters said sales over the Thanksgiving weekend were strong, helped by higher traffic and more browsers buying items. The company said it expects that momentum to continue through the holidays.

Sales during the holiday shopping season, which include November and December, are key for retailers. As much as 40 percent of their annual revenue can come from just those two months.

American Eagle Outfitters expects net income of 40 to 44 cents per share in the current quarter, which ends in January. Analysts polled by FactSet expected 39 cents per share.

For the August-October quarter, the company said net income was $52.4 million, or $0.27 per share. That compares with $33 million, or 17 cents per share, in the same period last year. Analysts expected 26 cents per share.

Revenue rose 11 percent to $831.8 million from $751.5 million last year. Analysts expected $820.3 million.

The company said online revenue and revenue in stores open at least one year rose 5 percent. The measure is considered a key gauge of a retailer’s financial health because it excludes stores that open or close during the year.

Shares gained 79 cents to $14.22 amid a broad market rally in premarket trading.

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