American Eagle Outfitters, Inc. (NYSE: AEO) has announced positive growth in its fourth quarter-to-date comparable sales, with a low single-digit increase, surpassing the previous guidance of positive 1%. The company reported that trends across its brands, American Eagle and Aerie, were positive during this period.
As a result of the strong performance, the company is raising its fourth quarter operating profit outlook to approximately $135 million, up from the previous guidance of $125 million to $130 million. This increase is based on a comparable sales increase of approximately 2%, building on the 8% growth seen last year. However, the company expects a decline in total revenue of approximately 5% due to an adverse impact from the retail calendar.
In terms of shareholder returns, American Eagle Outfitters repurchased 1.5 million shares for $27 million in the fourth quarter-to-date, bringing the year-to-date repurchases to 7.5 million shares for $158 million. The company still has 22.5 million shares remaining for repurchase under the current authorization. Following these announcements, the company's shares moved -4.6%, and are now trading at a price of $15.49. If you want to know more, read the company's complete 8-K report here.
