American Eagle Outfitters, Inc. (AEO) announced that fourth quarter-to-date brand revenue, through Saturday, January 7, 2023, is down approximately 3 percent, on the higher end of its expectations.
The company added that American Eagle is tracking slightly ahead and Aerie is in line with expectations. Quiet Logistics is expected to add 2 percentage points to fourth quarter brand revenue.
“Following record performance last year, we achieved our second highest holiday sales period in company history. I am pleased to see profit margins tracking at the high end of our expectations, powered by excellent inventory management and promotional discipline,” commented Jay Schottenstein, AEO’s executive chairman of the board and chief executive officer.
Gross margins are now expected to be on the high end of the company’s guidance of 32-33 percent, reflecting controlled promotions fueled by strong inventory management.
The company will release fourth quarter and fiscal 2022 results on March 1, 2023.