Aerie Q3 Sales up 4.4%

Aerie, as it “achieved all-time high third quarter revenue,” announced it is also planning to open 45 new locations in 2025. In the three months ending November 2, the brand's sales rose 4.4% to $410.442 million compared to $393.042 million in the same period last year. Comparable sales were also up 5%.

In the first nine months, sales for the intimates division of American Eagle Outfitters rose 5.8% to $1.199 billion, up from $1.133 billion in the 39 weeks ended October 28, 2023. According to AEO CEO Jay Schottenstein, speaking during the conference call, Aerie is now “on track” to hit $1.7 billion in sales in 2024. AEO president Jen Foyle, noted this would be the brand’s “eleventh consecutive year of revenue growth.”

The growth at Aerie has come, in part, by expanding its array of products. “Aerie’s apparel category achieved its seventh consecutive quarter of double digit growth, with strength across soft dressing and Offline activewear,” explained Foyle. “And we’re just getting started. These two categories continue to be our most exciting growth opportunities, which we are actively building on with each season. In soft dressing, strength in the third quarter was led by sleep, dresses, tees, tanks, sweaters and fleece. We are gaining traction in sleep by expanding into new fabrications and styles.” She added that the third quarter also saw “strength and share gains in leggings and sports bras,” stating that as “awareness of Offline builds, it’s bringing in new customers. In fact, active bottoms has been our strongest driver of new customer acquisitions.”

Foyle argued that while the “intimates” category “continues to be down across the industry, we are holding our share,” and claimed that she sees “demand trends improve sequentially with each month. Newness is resonating and I am pleased to see this improvement continue into this holiday season.” 

One category that has been done particularly well recently has been sleepwear. “Sleep has been outstanding,” Foyle confirmed. “We’ve been chasing into that business and we chased into it to Q4. It will be a new category for us as we deliver into spring, something very exciting that I think Aerie hasn’t really dipped their toes in. And thinking about spring, that will be something, a new category, to offset swim,” an area that has not been strong for Aerie in recent years. She concluded, that for spring, “I feel really good about the way we positioned our plans to offset any slowness in swim.”

Foyle also emphasized that the opening of 45 new stores, which will be a mix of Aerie and Offline (activewear) standalone and “side by side” locations, will provide Aerie with a significant boost in 2025. “Look Aerie has a lot of potential growth. This year we only opened four stores.” She added that the newer stores, including Offline stores, “are profitable. They’re making money out of the gate.” As of November 2, Aerie was operating a total of 317 Aerie and Offline locations.

Above, new products on the Aerie website: “Aerie Off-Duty Seersucker Pajama Shirt” and the “Superchill Logo String Cotton Bikini.”