American Eagle's Aerie is booming, but its namesake brand is lagging despite Sydney Sweeney ads
American Eagle's two brands are experiencing contrasting performance, with Aerie seeing significant growth while the namesake brand struggles. Despite a marketing push featuring actress Sydney Sweeney, American Eagle's sales fell short of expectations. The company remains optimistic about future growth and is focused on improving its women's business and brand positioning.
- ▪American Eagle's revenue fell 2% to $678.4 million in the fiscal first quarter.
- ▪Aerie's revenue surged about 34% to $480.83 million during the same period.
- ▪Comparable sales at American Eagle dropped 2%, while Aerie's sales soared 25%.
- ▪The company expects mid-single digit percentage comparable sales growth for the year.
- ▪American Eagle's net income was $23.53 million, compared to a loss of $64.90 million a year earlier.
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American Eagle's two key brands are moving in different directions.Revenue at the retailer's namesake banner fell during its fiscal first quarter, even after it ramped up its marketing campaign with actress Sydney Sweeney. Meanwhile, sales at its intimates brand Aerie spiked during the quarter. In the three months ended May 2, comparable sales at the American Eagle banner fell 2%, far worse than the 3.1% growth that analysts had expected, according to StreetAccount. Meanwhile, comparable sales at Aerie soared 25%, beating expectations of 19.1%.Net revenue for the American Eagle brand dropped 2% to $678.4 million, while Aerie revenue jumped about 34% to $480.83 million. Combined, the business saw comparable sales grow 8%, short of expectations of 8.6%, according to StreetAccount.
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