Business Insider/Jessica Tyler Aerie plans to open between 60 and 70 stores in 2019.
- American Eagle's Aerie brand has achieved explosive success in recent years.
- On Tuesday, American Eagle reported a 32% increase in same-store sales at Aerie during the third quarter of 2018. This marked its 16th consecutive quarter of double-digit positive growth.
- Here's why the brand has been so successful.
Aerie is on fire.
On Tuesday, American Eagle reported a 32% increase in same-store sales for its underwear-turned-lifestyle brand, Aerie. This marked its 16th consecutive quarter of double-digit positive growth. Group CEO Jay Schottenstein described this as one of the company's best results ever in a call with investors after the earnings release.
The company now plans to open between 60 and 70 new Aerie locations next year.
Meanwhile, its main competitor, Victoria's Secret, continues to come under pressure. Critics have said that the retailer's push-up bras and racy runway shows no longer resonate with the modern customer in the era of #MeToo. The brand came under fire last month after an executive from its parent company, L Brands, made controversial comments about transgender and plus-size models during an interview with Vogue.
Same-store sales were down 6% at Victoria's Secret stores in the most recent quarter. They were down 2% when including online sales.
We visited an Aerie store in Midtown Manhattan and saw why it has been so successful while Victoria's Secret has floundered:
