American Eagle Outfitters is seeing its Aerie brand emerge as a powerful growth engine that offsets ongoing softness in the core AE brand. Aerie’s first-quarter fiscal 2026 revenues surged 34% year over year to $480.8 million, with comparable sales up 25%, and the brand surpassed $2 billion in trailing 12-month revenues. Meanwhile, AE brand revenues and comps declined 2%, pressured mainly by women’s bottoms and a colder spring. Management still expects mid-single-digit comparable sales growth for fiscal 2026 and operating income of $390 million to $410 million, but faces a $20 million incremental tariff headwind and planned markdowns in the second quarter. The company is investing in digital capabilities, marketing, and distribution, including a new West Coast distribution center in Phoenix, while winding down third-party fulfillment to improve cost leverage.
American Eagle Outfitters IncAerie brand revenues surged 34% and comps up 25%, offsetting AE softness.
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