American Eagle stock jumps 10% as it expects a big holiday

American Eagle reported stronger-than-expected quarterly results and raised its full-year forecast on Tuesday, sending shares up as much as 15% in after-hours trading.

The company expects fiscal fourth-quarter comparable sales to grow 8–9%, far exceeding analysts’ 2.1% estimate, and now projects full-year adjusted operating income of $303–308 million, up from $255–265 million.

For the third quarter, earnings per share came in at 53 cents versus the expected 44 cents, while revenue rose 6% year-over-year to $1.36 billion.

The gains were largely driven by Aerie, with 11% comparable sales growth, while American Eagle stores saw just 1% growth despite marketing campaigns featuring Sydney Sweeney and Travis Kelce, CNBC has reported.

The company cited strong momentum into the holiday season, noting record revenue and a “record-breaking Thanksgiving weekend,” reflecting resilient consumer demand across discretionary retail.