Aerie's back-to-school campaign delivered 19% comparable sales growth in the second quarter, sharply outpacing parent company AEO Inc.'s American Eagle brand, which posted a 1% decline, according to Modern Retail. AEO Inc. reported total quarterly revenue of $1.38 billion, up 8% year over year. Between the two brands, a widening gap reflects a critical challenge: younger consumers are gravitating toward Aerie's activewear and lifestyle positioning while American Eagle struggles to reset its denim assortment. This came at a particularly competitive time for denim, with brands launching back-to-school campaigns earlier than usual.
Aerie found consistent customer demand across a diverse product mix. Tees, tanks, fleece and bottoms performed well. The brand's sports bras and intimates remained particularly strong, especially within Offline, its private activewear label. President Jennifer Foyle credited a cohesive lifestyle strategy. 'Mix and match, summer brights, stripes and a little leopard all worked,' she said on the earnings call. 'The customer is responding to the complete lifestyle offering, not just one category or one trend.' Aerie nearly doubled its ambassador program during the quarter, working with younger creators and launching an influencer program called 'Aerie Realmakers' with a strict no-AI stipulation.
American Eagle is taking a different approach. The brand launched a 10-week back-to-school campaign in late July featuring actress Sydney Sweeney, country singer Ella Langley and footballer Lamine Yamal. It also partnered with five sorority chapters on 'RushTok' content. Yet these efforts haven't reversed the sales decline. Instead, American Eagle is repositioning its denim around low-rise styles while working through older inventory. President Foyle said the company is 'rebalancing' its bottoms mix. Men's apparel, however, posted its fourth consecutive quarter of growth, suggesting that American Eagle's rebuild efforts are taking hold in at least one category.
For the third quarter, AEO Inc. expects Aerie and Offline to post comparable sales growth in the high-teens to 20% range, while American Eagle will be relatively flat, with the quarter also bringing a $196 million tariff refund, including interest.