American Eagle Outfitters (AEO) has upgraded its fourth-quarter outlook after holiday sales exceeded expectations.

The fashion retailer said its quarter-to-date comparable sales were up in the low single digits, ahead of recent guidance of positive 1 per cent, with positive trends across the American Eagle and Aerie brands.

As a result, the company is raising its fourth-quarter guidance, with operating profit expected to be approximately $135 million, up from the prior range of $125 million to $130 million. 

“As a top destination for holiday shopping, we achieved record sales in December,” said Jay Schottenstein, AEO’s executive chairman and CEO.

“We came to market with exciting new product assortments and engaging customer experiences, resulting in growth across brands and selling channels,” Schottenstein added.

As previously reported, the retail calendar will have an adverse impact on total revenue, resulting in a decline of approximately 5 per cent.