American Eagle Outfitters posted record first-quarter revenue of $1.2 billion on Wednesday, beating analyst expectations, but American Eagle stock tumbled more than 10% in after-hours trading as the flagship brand's sales declined.
Compared with $1.09 billion in the same period last year, total net revenue climbed 10%, the company said. That beat analyst expectations of $1.19 billion, according to CNBC. Diluted earnings per share came in at $0.14, compared with a loss of $0.36 a year earlier. Analysts had expected $0.12 per share, according to CNBC.
The headline numbers masked a sharp divide between the company's two main brands. The American Eagle banner posted a 2% drop in comparable sales, while Aerie's intimates business delivered a 25% comparable sales surge. Wall Street had projected 3.1% growth for the American Eagle label and a 19.1% gain for Aerie, according to CNBC.
On a brand level, the American Eagle label generated $678.5 million, a 2% decline, while Aerie brought in $480.8 million, up sharply from $359.8 million in the year-ago period, the company said.
"While results at American Eagle were mixed, our teams are moving decisively to reignite the women's business and strengthen product execution and brand positioning," CEO Jay Schottenstein said in a statement.
