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(Sharecast News) - Shares in American Eagle Outfitters soared on Wednesday, after the US fashion brand raised its full-year sales outlook.
Posting third-quarter numbers after the bell on Tuesday, the denim specialist - known for its bold marketing campaigns featuring actors and sports stars - said it now expected annual like-for-like sales to rise by low single digits.
The Pittsburgh-based business had previously forecast flat growth.
Estimates for the critical fourth quarter were also hiked, to between 8% and 9%. Analysts had been looking for far more modest growth of around 2.2%.
As at 1130 GMT on Wednesday, the stock had put on 14% in pre-market trading.
AEO, which also owns womenswear brand Aerie, ran a high-profile "Great Jeans" marketing campaign this year featuring actress Sydney Sweeney.
It has also secured partnerships with NFL player Travis Kelce's clothing brand and Wednesday actress Jenna Ortega.
That helped boost third-quarter comparable sales by 4%, with total net revenues up 6% at $1.4bn and operating profits rising to $113m from $106m. The net tariff impact was $20m during the quarter.
Jay Schottenstein, chief executive, said there had been a "significant trend change across our business, reflecting decisive steps taken, from merchandising to marketing to operations, all having a positive impact.
"Strong momentum has continued into the fourth quarter, including an excellent start to the holiday season."
The Thanksgiving weekend had been "record-breaking", he added.
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