As the back-to-school season dies down, Aerie is continuing its hot streak. Meanwhile, American Eagle is still dealing with sales slumps as it works to reposition its denim business.On Wednesday, AEO Inc. reported that its net revenue for its second fiscal quarter totaled $1.38 billion, an 8% increase over last year. Comp sales at Aerie were up 19%, while comp sales at American Eagle were down 1%. AEO Inc. also reported a tariff refund of $196 million, including interest.
On an earnings call on Wednesday, AEO Inc. CEO Jay Schottenstein said that the second quarter “represented another important step forward for AEO.” “We built on the strength of our portfolio, making progress at American Eagle, while Aerie continued to deliver outstanding performance,” he continued. With American Eagle, he said, “We are moving in the right direction, yet there remains work to do.”
The results also come at a competitive time for the denim category, which saw brands such as Pacsun, Hollister and American Eagle launch back-to-school campaigns earlier than usual. On an earnings call, Jennifer Foyle, Aerie and American Eagle’s president, said that American Eagle was seeing “sequential improvement in denim” but also “needed to pivot.”
