American Eagle Outfitters Inc. reported record first-quarter revenue as Aerie continued to drive strong growth, offsetting disappointing sales at its namesake banner.
The apparel retailer’s total net revenue increased 10% to $1.20 in the quarter ended May 2, topping the analyst estimate of $1.19 billion. Total comparable sales increased 8%.
By banner, Aerie comparable sales grew 25%. American Eagle comparable sales decreased 2%.
“Aerie is firing on all cylinders, delivering repeatable growth, by aligning seasonal trends, with elevated brand visibility, perception, and a more engaged customer base,” Jennifer Foyle, AEO’s president and executive creative director, said on the earnings call.
Foyle attributed the sales declines at American Eagle primarily to its women’s bottoms business with styles and fits that missed, coupled with a colder spring, which impacted demand in several seasonal categories.
