American Eagle Outfitters is seeing sequential improvement at its American Eagle brand as new women's denim fits gain customer acceptance, with American Eagle brand sales up 1% in the second quarter of fiscal 2026 while consolidated sales grew 8%. Management pointed to strong acceptance of new women's denim fits, including wide-leg straight and low-rise styles, with Jennifer Foyle saying the company has seen sequential improvement in denim after pivoting toward the fits that were working and making low-rise a key focus. The repositioned denim assortment also featured in the company's back-to-school marketing launch, and marketing is shifting toward conversion-focused spending alongside efforts to rebalance inventory and work through older and seasonal merchandise. Still, management said further work remains: American Eagle is still working through older denim fits and rebalancing inventory, and while women's bottoms have improved they remain mixed, though pants and cargoes have performed exceptionally well. AEO shares have declined 2.4% in the past six months compared with the industry's decline of 13%, and the company carries a Zacks Rank #3 (Hold), trading at a forward price-to-earnings ratio of 7.98X versus the industry's average 11.90X.
American Eagle Outfitters IncAmerican Eagle brand sales rose 1% in fiscal Q2 2026 on strong customer acceptance of new women's denim fits like wide-leg straight and low-rise styles.
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