economy
American Eagle's Aerie is booming, but its namesake brand is lagging despite Sydney Sweeney ads
American Eagle beat Wall Street's expectations but sales at its namesake banner fell short of estimates after its latest Sydney Sweeney campaign.
TL;DR
- Aerie's comparable sales surged 25%, exceeding analyst expectations.
- American Eagle's namesake brand comparable sales fell 2%, falling short of projections.
- Overall company revenue of $1.20 billion slightly surpassed Wall Street estimates.
- Net income was $23.53 million, or 14 cents per share, compared to a loss a year prior.
- Marketing efforts with Sydney Sweeney for the American Eagle brand did not significantly boost sales.
- The company plans to recalibrate marketing spending and focus on digital media for better ROI.
- Sales declines in the American Eagle brand were primarily attributed to issues in the women's bottoms segment.