American Eagle's Sydney Sweeney Campaign Fails to Boost Women's Bottoms Sales

American Eagle’s Sydney Sweeney Campaign Fails to Boost Women’s Bottoms Sales

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6.2.2026

Quick Facts

American Eagle’s Q1 comparable sales fell 2% despite Sydney Sweeney partnership, missing analyst expectations of 3% growth
Company stock dropped 13.1% in morning trading after earnings report showed struggles in largest product category
Management cited inventory misallocation and lack of popular fits in women’s bottoms as primary driver of sales decline

American Eagle Outfitters posted disappointing first-quarter results despite its high-profile partnership with actress Sydney Sweeney. The retailer’s comparable sales dropped 2% year-over-year, driven primarily by declines in women’s bottoms.

The results fell short of analyst expectations for 3% growth. American Eagle stock tumbled 13.1% in morning trading following the earnings announcement.

“We are not satisfied with where the business performed this quarter, especially in women’s,” said President Jennifer Foyle during the earnings call. She pointed to fundamental product issues rather than marketing problems as the root cause.

The company struggled with inventory allocation in its largest product category. Foyle said the sales declines came from “not having enough of the styles shoppers wanted and too much of the ones they didn’t.”

Analysts at Telsey Advisory Group noted that American Eagle “misallocated assortment and lacked sufficient depth in key winning fits/silhouettes, leading to underperformance in its largest category.”

The struggles came despite American Eagle’s investment in what the company called its most expensive campaign to date. The partnership with Sweeney initially showed promise when all Sweeney-branded jeans products sold out within a week.

The contrast within American Eagle’s portfolio was stark. While the namesake brand struggled, Aerie posted a 25% bump in comparable sales during the same period.

Inventory levels rose 27% to $817 million at quarter end, with units up 5%. The company also faces headwinds from tariffs, which CFO Michael Mathias said created a “150 to 200 basis point impact.”

American Eagle is taking corrective action heading into the back-to-school season. “We are already making adjustments,” Foyle said. “We are refining our bottoms architecture, specifically optimizing key silhouettes and risers while leveraging our chase capabilities to inject fresh newness.”

The company plans to recalibrate its marketing spending to focus on conversion rather than just awareness. Despite the celebrity partnership driving engagement, fundamental product execution remains the key challenge for the retailer.