Clothing and accessories retailer American Eagle Outfitters, Inc. ( AEO ) provided an update on its fourth quarter-to-date performance.

For the quarter-to-date period ending January 4, 2025, the company reported low single-digit growth in comparable sales, surpassing its earlier forecast of a 1% increase. The trends across both its American Eagle and Aerie brands were positive.

In light of these strong results, the company raised its fourth-quarter guidance. Operating profit is now expected to be around $135 million, up from the previous outlook of $125 million to $130 million.

This is based on a 2% increase in comparable sales, following an 8% growth last year. However, as said earlier, the retail calendar will have an unfavorable impact on total revenue, resulting in total revenue down approximately 5%.

“As a top destination for holiday shopping, we achieved record sales in December. We came to market with exciting new product assortments and engaging customer experiences, resulting in growth across brands and selling channels,” said Executive Chairman of the Board and CEO Jay Schottenstein.

“We also remain focused on driving operational efficiencies, putting us on track to deliver high-teens operating profit growth in 2024,” Schottenstein added.

For the fourth quarter to date, the company has repurchased 1.5 million shares for $27 million, bringing its year-to-date repurchases to $158 million.

AEO has returned $231 million to shareholders year-to-date through dividends and repurchases.

Price Action: AEO shares are trading lower by 3.98% at $15.58 at last check Monday.

Read Next:

Prada Considers Potential Acquisition Of Versace