By Katherine Hamilton

American Eagle Outfitters said its core brand isn't performing as well as management would like, after the segment's sales fell in the first quarter.

"We are not satisfied with where the business performed this quarter, especially in women's," Jennifer Foyle, president and executive creative director, told analysts Thursday.

Shares slid 11% to $16.02 in after-hours trading.

Same-store sales declined 2% at American Eagle's namesake brand. Its underwear and swimwear brand Aerie helped offset that decline with a 25% increase in same-store sales.

Revenue in the quarter rose 10% to $1.20 billion. Analysts surveyed by FactSet forecast revenue of $1.18 billion. Same-store sales increased 8%, just below the 8.5% growth analysts projected.

Women's bottoms under the American Eagle brand didn't sell as much as executives were expecting, Foyle said. The category was the primary driver over the brand's overall sales decline.

"We know where the problem is," Foyle said.

Management is now focused on improving conversion, clothing assortments and productivity within the women's category. Foyle said the goal is to get American Eagle's denim business in better shape by the back-to-school season, a key sales period for the company.

Aerie, meanwhile, helped bolster overall performance with a jump in revenue. Brand awareness has increased significantly, executives said, and customers are engaging heavily with the outfits Aerie puts together.

The company swung to a profit of $23.5 million, or 14 cents a share, compared with a loss of $64.9 million, or 36 cents a share, a year earlier.

In the current second quarter, the company anticipates same-store sales will increase by a mid-to-high single-digit percentage. Analysts are forecasting 6.5% growth.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 28, 2026 17:24 ET (21:24 GMT)

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