Dive Brief:
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American Eagle late Wednesday reported a jump in Q1 sales of 8% year over year to $700 million, beating expectations of $691.5 million. Same-store sales increased 7%, a far cry from the 10% decline a year ago.
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Earnings also beat expectations, with 15 cents per diluted share, a healthy increase from $0.02 year over year and bettering expectations of 12 cents.
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The retailer has also opened a pop-up store in New York City branded “Don’t Ask Why” that follows the one-size fits all approach of Italian retailer Brandy Melville, which has been a hit with teen girls and younger women.
Dive Insight:
American Eagle appears to be moving ahead while the other two “A’s” — Abercrombie & Fitch and Aeropostale — continue to struggle. The retailer managed to beat earnings despite continued pressure to keep prices down, and has found ways to make an impression on the young customer.
The decision by the retailer’s Aerie lingerie brand to eschew Photoshop in its ads, for example, has been well received. And its experiment with the Brandy Melville copycat could go far.
