Actress Sydney Sweeney made a notable appearance on the billboard of the New York Stock Exchange as she joined American Eagle Outfitters to ring the Opening Bell on February 9, 2026. The retailer is currently experiencing diverging trends among its key brands.
In the fiscal first quarter, American Eagle’s primary banner saw a 2% decline in comparable sales, which fell short of analysts’ expectations of a 3.1% growth, with net revenue at $678.4 million. Conversely, its intimates brand, Aerie, recorded a robust 25% increase in comparable sales, exceeding expected growth of 19.1%, and generating approximately $480.83 million in revenue.
American Eagle’s overall business experienced a modest 8% increase in comparable sales; however, this was below the anticipated 8.6%. CEO Jay Schottenstein acknowledged the challenges faced by the American Eagle banner but expressed confidence in their strategies to revitalize the women’s division and improve product execution.
Despite launching a renewed marketing campaign featuring Sweeney—this time with a more subdued approach than last year’s—sales for the American Eagle brand did not see significant improvement.
For the quarter, American Eagle reported earnings of $23.53 million, or 14 cents per share, compared to a loss of $64.90 million a year prior. Revenue grew 10%, amounting to $1.20 billion. Looking ahead, the company maintains its guidance for moderate sales growth and anticipates a slight decrease in gross margin for the upcoming quarter.
Key Points:
- Why this story matters: It highlights the contrasting performance of American Eagle and Aerie, showcasing the challenges facing retailers in a fluctuating market.
- Key takeaway: Despite celebrity marketing efforts, American Eagle struggles to boost sales while Aerie continues to thrive.
- Opposing viewpoint: Some may argue that branding and marketing strategies could still be refined to better align with consumer preferences to enhance sales at American Eagle.
