American Eagle (AEO $12.81 -2.35) lowered fourth quarter EPS guidance to $0.33-0.35, ex-items, from $0.40-0.44 vs $0.43 consensus with holiday sales +15% YoY to $887 million and comps increased 12%. The holiday season started strong with a nearly 20% increase in comparable store sales in November and record sales over Thanksgiving weekend, fueled by strong unit sales, with customers responding positively to the assortments and promotional events.
During the important final two weeks of December, in a significantly more competitive environment, the co made a strategic decision to take a more aggressive promotional stance. While impacting margins, the decision enabled the co to generate strong unit sales, increase market share and achieve targeted inventory levels.






