With sales momentum continuing, American Eagle Outfitters appears headed for a happy holiday season.

On Tuesday, AEO reported total revenue grew 6 percent in the third quarter to a record $1.36 billion, driven by a total comparable sales increase of 4 percent.

Comparable sales at the Aerie brand rose 11 percent. At the American Eagle brand, comparable sales rose 1 percent. AEO also operates the Offline by Aerie, Todd Snyder and Unsubscribed brands.

Net income rose 6.7 percent to $91.34 million, up from $80 million recorded in the year-ago period.

Gross profit of $552 million rose 5 percent from $527 million last year. The gross margin of 40.5 percent declined 40 basis points from last year. The net tariff impact was $20 million or 150 basis points to gross margin. Higher markdowns we

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