American Eagle Outfitters Inc. reported a smaller-than-expected decline in quarterly sales on Thursday and raised its full-year profit forecast, sending its shares up 6.5%.
The company’s net income fell to $161.4 million, or $1.53 per share, in the third quarter ended Oct. 30, from $216.8 million, or $1.94 per share, a year earlier. Net sales fell 3% to $1.24 billion.
Analysts on average had expected a net income of $1.48 per share and revenue of $1.22 billion, according to IBES data from Refinitiv.
The company said it now expects full-year 2023 net income in the range of $500 million to $550 million, compared with its prior forecast of $465 million to $500 million.
American Eagle also maintained its forecast for revenue growth in the low-single digits for the full year.
The company said its namesake brand continued to struggle, with a 7% decline in comparable sales in the quarter, hurt by a decline in the number of transactions.
However, its Aerie brand continued to perform well, with a 9% increase in comparable sales.
American Eagle said it was encouraged by the momentum in its Aerie business and the progress it was making in improving the profitability of its namesake brand.
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