American Eagle is back in fashion with teens

While Abercrombie & Fitch and Aeropostale continue to struggle against sharp sales declines,American Eagle has managed to win back shoppers, if its second quarter results are any indication.

American Eagle reported net income of $33.26 million, an almost six-fold increase from $5.81 million in the prior year period. Revenue increased 12% to $797 million from $711 million, aided by an 11% jump in same-store sales.



“I’m pleased to report another strong quarter, and to see positive momentum continue,” said Jay Schottenstein, interim CEO. “The team is delivering exceptional execution, and our customers have taken notice of improvements to our merchandise and overall customer experience. Both American Eagle and Aerie delivered strong sales and earnings growth across channels.”

American Eagle has been revamping its merchandising strategy in an effort to win back teens bored with logo-laden clothing and other non-trendy apparel.It is also controlling inventories to boost margins and respond faster to changing fashion trends. And the changes seem to be working.