What is the revenue and EPS growth rate for American Eagle Outfitters year over year?

Did American Eagle Outfitters beat or miss consensus estimates last quarter?

What is the market's earnings forecast for American Eagle Outfitters next quarter?

What is American Eagle Outfitters's gross profit margin?

What does American Eagle Outfitters do and what are its main business segments?

What were the key takeaways from American Eagle Outfitters’s earnings call?

What guidance did American Eagle Outfitters's management provide for the next earnings period?

What factors drove the changes in American Eagle Outfitters's revenue and profit?

- **Revenue Beat**: Q3 revenue up 6% to $1.4B, with Aerie comps +11% and AE +1% (sequential improvement). Q4 guidance raised to 8-9% comp growth.
- **Profitability Recovery**: Operating income $113M vs. $95-100M guidance, driven by demand and cost control. Gross margin stabilized at 40.5% despite $20M tariffs.
- **Aerie Growth Engine**: Aerie/Aerie Offline revenue near $2B with <5% market share, positioning for long-term expansion. Sleep and Offline activewear categories outperforming.
- **Marketing Impact**: $44B impressions from Sydney Sweeney and Travis Kelce campaigns, driving 1M+ new loyalty members. Q4 ad spend to maintain 5%+ sales penetration.

**【CEO Summary Section】**
- **Record Revenue Growth**: Total revenue increased 6% to $1.4 billion, driven by 4% comparable sales growth across both AE and Aerie. Aerie comps rose 11%, while AE comps improved 1% sequentially.
- **Operational Turnaround**: Operating income of $113 million exceeded guidance, fueled by strong demand and cost control. Diluted EPS of $0.53 rose 10% year-over-year.
- **Strategic Investments**: Incremental ad spend and operational improvements positioned the business for long-term growth, with Aerie and Offline emerging as key growth engines.

**【CFO Financial Commentary】**
- **Top-Line Strength**: Gross profit dollars increased 5% to $552 million, despite a 40 basis point margin decline due to tariffs. Operating margin of 8.3% reflected $20 million tariff impact.
- **Inventory Management**: Ending inventory rose 11% ($1.1 billion), driven by Aerie/Aerie Offline growth and AE denim restocking. Units up 8% supported Q4 guidance of 8-9% comp growth.
- **Leverage Opportunities**: Buying, occupancy, and warehousing costs leveraged 20 basis points, while SG&A increased 10% due to ad spend. Q4 guidance raised to $155-160 million operating income.

**【Q&A Highlights】**
- **Q4 Momentum**: November comps ahead of 8-9% guidance, with Aerie up high teens and AE low single digits. Digital sales outpaced stores, benefiting from Sydney Sweeney and Travis Kelce campaigns.
- **Tariff Mitigation**: $50 million Q4 tariff impact expected, with ongoing cost offsets (e.g., freight, in-stock management). 2026 tariff impact estimated at $25-30 million per quarter.
- **Store Strategy**: 2026 plans include 40-50 new Aerie/Offline stores, while AE closures slow to ~20 annually. Remodeled AE stores comp +20%+.
- **Customer Engagement**: Loyalty members up 1 million, with Aerie sleep and Offline activewear driving new customer acquisition. Gen Z engagement strong across brands.

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