American Eagle's first-quarter sales experienced a 2 per cent year-on-year decline, with the women's bottoms category notably underperforming. This disappointing result occurred despite recent marketing efforts, including high-profile campaigns featuring Euphoria star Sydney Sweeney, according to analysts at TD Cowen.
Underlying Issues in Women's Wear
Analysts identified several reasons for the struggles in women's wear, including a “misallocated assortment” and insufficient “depth” in popular styles. These factors contributed to the lackluster sales performance, even with the star-studded campaign aimed at driving demand.
Contrasting Performance in Other Segments
In contrast, American Eagle's men's products delivered stronger results. Additionally, its sister brand Aerie, which includes the activewear label Offline, achieved a 25 per cent jump in comparative sales, highlighting a divergence in performance across the company's portfolio.
Campaign Backlash
The initial “Sydney Sweeney Has Great Jeans” campaign faced backlash, with some critics perceiving its messaging as echoing “white supremacist ideas”. Sweeney later addressed these claims, but the controversy may have impacted the campaign's effectiveness.
