American Eagle Outfitters posted positive results in Q3, with growth inching up at its namesake brand. While the company’s intimates line Aerie saw comparable sales jump 11% for the period ended Nov. 1, bolstered by offerings like its Offline athleisure collection, American Eagle was up 1%, according to an earnings statement.
That reverses a negative sales trend — American Eagle was down 3% the prior quarter — but analysts asked for more detail on why growth has been slower to accrue at American Eagle compared to Aerie given that the former has run a series of expensive, higher-profile ad campaigns in recent months.
“Look, this is important for our future. We need to remain strong and competitive, and we need to amplify our product,” said Jennifer Foyle, president and executive creative director of American Eagle and Aerie, in response to a Citigroup analyst question around the gap between the two brands as it relates to marketing.
Foyle explained that more impactful marketing can create a larger “halo effect” on the business. CEO Jay Schottenstein also chimed in to note that American Eagle has added over 1 million loyalty members in recent months, while jeans featured in a Sydney Sweeney campaign sold out within days.
American Eagle’s revamped marketing strategy, which has centered on collaborations with celebrities like Sweeney, Travis Kelce and Martha Stewart, has been a point of pride for executives. The brand is trying to strengthen its position in menswear and the ultra-competitive denim category, along with shoring up cultural relevance amid stiffer competition from rivals like Gap.
American Eagle’s menswear lineup improved in Q3 on the back of a partnership with NFL star Kelce’s True Kolors brand that was released around the busy back-to-school shopping season. The apparel marketer was more uneven in womenswear, where denim served as a bright spot while non-denim bottoms, shirts and dresses lagged.
“In women’s, although we had a very good back-to-school season, the quarter in total was not as strong,” said Foyle on the earnings call. “Robust demand early in the period led to a number of out of stocks in some of our best-selling items.”
American Eagle’s campaign with “Euphoria” actor Sweeney was its largest marketing effort to date and courted national controversy for messaging that seemed to equate good genetics with good jeans, which critics interpreted as a nod to the long-disproven theory of eugenics. Executives have defended the work, arguing the creative was always about denim and is part of a larger brand reset. The Sweeney promotion contributed to some product shortages in Q3, according to Foyle, though denim sales were robust around Black Friday.
The Kelce and Sweeney campaigns together have generated over 44 billion impressions to date and continued to attract new customers in Q3, with noticeable benefits across digital channels. American Eagle’s tie-up with Stewart, which launched in late November, is currently running as part of its holiday strategy.
“Total customer counts are up across brands and customer loyalty grew 4% in the quarter,” said Foyle. “AE is clearly building long-term awareness and desirability and has captured the attention of both new and existing customers.”
American Eagle’s parent on the whole delivered record Q3 revenue, up 6% to $1.4 billion, and raised its Q4 outlook. The holiday period will further test whether American Eagle’s bolder marketing bets are building long-term momentum and winning over shoppers who are expected to pull back on discretionary spending.
“Although it’s still early days of our renewed marketing strategy, we know that having the right talent amplifies our brand and product at key moments,” said Foyle. “We are very encouraged by our progress and expect to continue fueling brand excitement into 2026 and beyond.”
