Actress Sydney Sweeney is pictured on a billboard in front of the New York Stock Exchange (NYSE) before ringing the Opening Bell for American Eagle Outfitters on February 09, 2026, in New York City.
Spencer Platt | Getty Images
American EagleTwo important brands going in different directions.
Revenue at the retailer’s namesake banner fell in its first fiscal quarter, even after it co-branded its marketing campaign with actress Sydney Sweeney. Meanwhile, sales of its intimates brand Aerie rose during the quarter.
Trends in the retailer appeared to disappoint Wall Street, with shares down more than 10% in extended trading.
In the three months ended May 2, comparable sales of the American Eagle banner fell 2%, worse than the 3.1% growth expected by analysts, according to StreetAccount. During that period, comparable sales at Aerie rose 25%, beating expectations by 19.1%.
American Eagle’s total revenue fell 2% to $678.4 million, while Aerie’s revenue jumped nearly 34% to $480.83 million.
Combined, the business saw comparable sales grow 8%, short of expectations of 8.6%, according to StreetAccount.
“While American Eagle’s results have been mixed, our teams are taking decisive action to dominate the women’s business and strengthen product development and product positioning,” CEO Jay Schottenstein said in a statement.
“Looking ahead, our priorities are clear. Despite continued consumer and macroeconomic uncertainty, we remain confident in our ability to navigate the near term,” he added.
During the quarter, American Eagle ran its campaign with “Euphoria” star Sweeney ahead of the summer shopping season, but it took a cooler approach than the controversial campaign it launched last year under the slogan: “Sydney Sweeney has good jeans.” This time, instead of cracking and double-entering, Sweeney was smiling politely, carelessly on the beach.
Although the two campaigns were different, the result was the same – neither led to a significant increase in sales for the American Eagle banner.
Here’s how the commodity company performed during the first fiscal quarter compared to Wall Street’s expectations, based on a survey of LSEG analysts:
- Earnings per share: 14 cents vs. 12 cents expected
- Net worth: $1.20 billion versus $1.19 billion expected
During the quarter, American Eagle posted net income of $23.53 million, or 14 cents per share, compared with a loss of $64.90 million, or 36 cents per share, a year earlier.
Sales rose to $1.20 billion, up 10% from $1.09 billion last year.
American Eagle reiterated guidance for the full year and issued an outlook for the current quarter. For the year, the company expects mid-single-digit sales growth and an increase in gross margin.
In the second quarter, the retailer expects comparable sales to rise by a mid-to-high single-digit percentage, compared to estimates for 6.5% growth, according to StreetAccount. It expects its gross margin to decline compared to last year during that period.
