Fueled by Aerie’s robust sales performance, American Eagle Outfitters achieved higher total revenue in the second quarter of 2026, despite another decline in comparable sales at its core American Eagle brand, which has been having difficulty gaining traction with female shoppers.
Aerie Drives Q2 Gains Despite Flagship Challenges
For Q2 2026, American Eagle Outfitters reported net revenue of $1.4 billion, reflecting an 8% year-over-year increase, as stated in a company announcement issued Wednesday.
Most of this positive momentum can be traced to Aerie, which posted a 19% rise in comparable sales compared to the same period last year. Meanwhile, the American Eagle brand continued to stumble, reporting a 1% decrease in comparable sales and ongoing struggles, particularly in the women’s apparel category.
Strength in Men’s Apparel; Renewed Focus on Women’s Category
Speaking to analysts, CEO Jay Schottenstein shared that the company’s men’s lines at American Eagle managed to generate another quarter of positive comparable sales. However, Schottenstein made clear that restoring consistency in the women’s assortment remains a top priority for the American Eagle brand.
Despite significant marketing campaigns throughout the year—including denim-focused promotions with actress Sydney Sweeney—the brand did not achieve the expected turnaround in women’s sales. The softness in this segment persisted despite these efforts.
On the call, Jennifer Foyle, who serves as President and Executive Creative Director of American Eagle and Aerie, described how the team has “pivoted quite nicely into the fits that were working 100%,” especially through a shift toward more low-rise denim silhouettes. Still, she pointed out the need to reduce outdated inventory and better match the product mix to customers’ evolving preferences.
Managing Inventory and Q3 Projections
Former CFO Mike Mathias, now an advisor to the company, commented to analysts that while Aerie’s solid merchandise margin improved results, markdowns at American Eagle partially negated these gains. Mathias advised that further markdowns are anticipated in the third quarter to address inventory issues.
For the remainder of the year, American Eagle Outfitters is forecasting mid- to high-single-digit increases in comparable sales for the third quarter. Projections call for double-digit growth to continue at Aerie, while the American Eagle brand is expected to see comparable sales remain roughly unchanged, Mathias said.
Analysts Weigh In on Diverging Brand Trajectories
The company’s second-quarter performance sparked commentary from several Wall Street analysts. “AE remains a laggard despite big marketing investments/favorable category trends, leaving us cautious,” noted BMO Capital Markets analyst Kelly Crago in a memo to investors. Similar concerns were raised by Tom Nikic of Needham, who said, “AEO remains a tale of two brands, with Aerie remaining red-hot, but the larger American Eagle brand is still a bit of a mixed bag.” Nikic also cautioned that both Aerie and American Eagle will face tougher comparisons in the latter half of the fiscal year, particularly for Aerie.
Ultimately, the results highlight a pronounced split within American Eagle Outfitters’ brand lineup: while Aerie’s growth continues to compensate for weaknesses in the women’s business at American Eagle, leadership remains focused on refreshing styles and optimizing inventory.