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AEO INC . NEWS RELEASE AEO Inc. Provides Fourth Quarter Update Ahead of Today's Investor Meeting 1/21/2021 Over $ 95 million in adjusted operating income expected , well above last year Margin expansion from reduced promotions , greater full - priced selling High 20 % ' s Aerie revenue growth and strong digital momentum driving results PITTSBURGH -- ( BUSINESS WIRE ) -- American Eagle Outfitters ( NYSE : AEO ) today announced that the company expects fourth quarter 2020 adjusted operating income to exceed $ 95 million , excluding potential asset impairment and restructuring charges * . This compares to reported operating income of $ 0.5 million and adjusted operating income of $ 77 million last year . Anticipated adjusted operating income growth is driven by strong margins , reflecting reduced promotions , higher full - priced selling and well - received holiday product assortments . Fourth quarter revenue is expected to decrease in the low single digits , due to store revenue declines from weak mall traffic , store closures and reduced hours related to the pandemic . The digital channel maintained strong momentum , with double - digit growth expected across brands . Aerie's fourth quarter revenue is expected to increase in the high - 20 % range . American Eagle is expected to decline in the low double - digit range , as a result of its higher store penetration . " I'm extremely proud of our performance during the fourth quarter , which demonstrated strong growth to last year and continued quarterly sequential improvement . Compelling holiday product and marketing , combined with a disciplined approach to promotional activity drove very strong margin results , " commented Jay Schottenstein , AEO's Executive Chairman of the Board and Chief Executive Officer . “ The team continues to instill strong inventory and expense management , and I believe we are well - positioned as we head into 2021. Thanks to our talented , 1