American Eagle Outfitters Stock Rises Ahead of Q3 Earnings: Retail’s Optimistic

American Eagle Outfitters ($AEO) stock was up 1.68% ahead of its third-quarter earnings, lifting retail sentiment.

Wall Street analysts are expecting earnings per share of $0.47 on estimated revenues of $1.3 billion, according to Stocktwits data. American Eagle will release its third quarter fiscal 2024 results on Wednesday, after market close.

For the second quarter, the company reported record second-quarter revenues of $1.3 billion, increasing 8% from the same period in 2023. EPS came in at $0.39, beating estimates of $0.38. A CNBC report noted an earlier calendar shift positively impacted its second-quarter sales by $55 million, observing the sales increase would otherwise have been slimmer.

American Eagle CFO Mike Mathias has previously stated its full-year guidance of around 4% comparable sales growth and 2-3% revenue growth, reflecting confidence in its core business trajectory.

Retail sentiment on the stock improved to ‘extremely bullish’ (95/100) from ‘neutral’ (48/100) a week ago. Message volumes increased to ‘extremely high’ from ‘normal’.

Many users were expecting a huge earnings beat, according to a Stocktwits user poll. 

In October, JPMorgan lowered the apparel company’s price target to $27 from $29 and kept an Overweight rating, as part of its models update in the department store and specialty softlines group, the Fly.com reported.

Jay Shottenstein, executive chairman and CEO previously stated the company sees "the greatest opportunity in the history of the company" and expects it could grow from a $5 billion business to a $10 billion business in the next few years.

American Eagle stock is down 4% year-to-date.