Despite a high-profile advertising campaign featuring actress Sydney Sweeney, American Eagle's women's bottoms category continued to struggle in the first quarter, contributing to a 2 percent decline in the brand's sales year-on-year, executives said on Thursday.
“We are not satisfied with where the business performed this quarter, especially in women’s,” Aerie and American Eagle President Jen Foyle said on an earnings call, according to Retail Dive. “We know what needs to be corrected, and the teams are aligned and activated to return AE to growth.”
The disappointing performance was attributed to assortment misallocation and a lack of depth in key fits, compounded by weaker conversion in stores and external pressures such as cold weather. Meanwhile, men's products delivered stronger results, and the brand is refining its women's assortment ahead of the back-to-school season.
The campaign, which launched last July, faced backlash over its “jeans/genes” wordplay, which critics said echoed white supremacist ideas. Sweeney later addressed the controversy, stating she is “against hate and divisiveness.”
In contrast, American Eagle's Aerie brand, including its Offline activewear subbrand, saw a 25 percent jump in comparable sales. Analysts at UBS said Offline's store count could triple, predicting significant growth for Aerie.
