American Eagle Outfitters raises annual sales forecast

American Eagle Outfitters raised its annual comparable sales forecast on Tuesday, betting on marketing-driven demand for its attire and equipment throughout the vacation season, sending its shares up ⁠about 15% after the bell.

Marketing campaigns and newer collections of clothes, together with a ⁠give attention to high-earning shoppers, have helped the corporate offset losses from the broader retail slowdown and budget-conscious shoppers pulling again ‍on discretionary spending ‌amid inflationary costs and trade-policy-driven uncertainty.

The firm has been ⁠making an attempt to spice up ‌demand via its advertising initiatives, together with the “Great ‌Jeans” denim marketing campaign with actress Sydney Sweeney, a tie-up with NFL participant Travis Kelce’s clothes model Tru Kolors, and partnerships with tennis participant Coco Gauff and ‍actress Jenna Ortega.

The firm sees annual comparable sales rising within the low single digits, in comparison with its ‌earlier ⁠expectations ​of about flat progress.
The firm posted quarterly ⁠web ​income of $1.36 billion, in contrast with analysts’ estimates of $1.32 billion, in line with knowledge compiled by LSEG.

Quarterly comparable sales ​rose 4%, in contrast with analysts’ estimates of a 2.4% rise. The firm sees present ⁠quarter comparable sales rising ⁠between 8% and 9%, in contrast with analysts’ estimates of a 2.2% rise.