American Eagle shifts marketing focus to performance-oriented amid sales decline
American Eagle Outfitters' namesake brand is adjusting its marketing strategy to be more performance-oriented after comparable sales fell 2% year-over-year in the quarter. Sister brand Aerie grew 25% during the same period. The company plans to increase investment in digital media, performance marketing, and influencers in the second half of the year, and has launched a new creator community program.

American Eagle Outfitters' namesake brand is adjusting some of its marketing strategies and shifting toward performance-driven approaches, after the brand's quarterly comparable sales—a key indicator of a retailer's health—fell 2% year over year. American Eagle's sales decline stands in stark contrast to sister brand Aerie, which posted a 25% increase in comparable sales during the spring period ending May 2, setting a new record for the intimates and loungewear business,according to the earnings statement。
American Eagle's advertising campaigns have been highly focused on celebrity partnerships, including a controversial collaboration with Sydney Sweeney. Last year, the partnership with the "Euphoria" actresshelped the brand attract new customers, while Sweeney's signature denim pieces quickly sold out. Sweeney returns in American Eagle's Spring/Summer 2026advertising campaign, promoting denim shorts. It is still too early to assess the full impact of the latest Sweeney-led campaign, which launched in mid-April, but bigger changes seem to be brewing internally at American Eagle to reignite growth ahead of the crucial back-to-school shopping season. According to executives, women's bottoms were the main driver of American Eagle's first-quarter sales decline.
"Although American Eagle's results have been mixed, our team is acting decisively to revitalize the women's business and strengthen product execution and brand positioning," said Jay Schottenstein, CEO of parent company AEO, in a press statement accompanying the earnings.
The apparel maker has other collaborations in the works, hoping to generate buzz among the highly sought-after Gen Z consumer. Executives noted on the earnings call that American Eagle's sponsorship of the Stagecoach country music festival was a highlight, with support from young artists like Ella Langley and Bailey Zimmerman. But overall, American Eagle appears to be adjusting its strategy in the second half of the year, trying to tie marketing more closely to conversion.
"Spending in the second half leans more toward digital media, performance marketing, influencer investment, and more everyday traffic-driving elements," AEO Chief Financial Officer Michael Mathiassaid on the investor call. "We are rebalancing how those funds are allocated, and actually starting in the third quarter, we believe this will set us up for success and enable us to achieve the revenue expectations we have set for the second half."
Both American Eagle and Aerie have revamped their influencer marketing programs this year. American Eagle in Februarylaunched the AE Creator Community, which offers rewards for participating in weekly and monthly challenges, such as posting styling videos, aiming to build relationships with content creators beyond one-off collaborations. Aerie's Realmakers communitylaunched in April, shares similarities with the former, and was created in partnership with brand advocacy platform Duel.
AEO's initiatives align with a broader retail trend towardintroducing more gamified, always-on creator programsthat go beyond traditional affiliate structures, recognizing the high volume of video content needed to stand out in algorithm-driven feeds. Additionally, as marketplaces like TikTok Shop gain traction with U.S. consumers, retailers are eager to seize social commerce opportunities. American Eagle recently launched a dedicated TikTok Shop page.
American Eagle said both of its new influencer programs have exceeded internal expectations, with Aerie surpassing its six-month metrics within weeks. The company also teased a strategic hire to elevate influencer marketing for the American Eagle business, though it did not provide specifics on the earnings call.