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American Eagle Sticks to Annual Sales Forecast Again, Shares Slump

FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo
FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo
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American Eagle Sticks to Annual Sales Forecast Again, Shares Slump

FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo
FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, US, June 1, 2021. REUTERS/Erin Scott/File Photo

American Eagle Outfitters on Wednesday reiterated its annual comparable sales forecast, as the apparel maker sees persistent pressure on seasonal categories in its namesake brand amid choppy discretionary spending.

Shares of the company, which said it expects current-quarter gross margin to be flat from a year earlier, fell about 10% in extended trading, Reuters reported.

Demand for apparel has remained uneven as stubborn inflation and macroeconomic uncertainty prompt shoppers to focus on ⁠value and essentials ⁠such as gas and groceries and wait for promotions before buying clothing and accessories.

American Eagle, like peers such as Gap, has been navigating challenges including weakness in certain seasonal categories in the last few months.

"We have seen a little pressure on seasonal ideas in American Eagle," said Jennifer Foyle, executive creative director at American Eagle and Aerie, adding ⁠that the company continues to see some of that pressure going into the third quarter and is working on right-sizing inventory.

For the quarter ended August 1, inventory cost was up 14% from a year ago, including the impact of incremental tariffs. The company said it plans to continue rebalancing inventory across brands and categories throughout the year.

The broader apparel sector has seen mixed demand patterns, with some retailers struggling to anticipate shifting fashion trends and changing customer preferences.

The inventory issues and promotional activity in the third quarter for American Eagle are primarily concentrated ⁠in some seasonal businesses, ⁠especially shorts, Foyle said, adding that "there is some fashion that we need to ensure that we're clearing."

"American Eagle continues to struggle as our experts have pointed out a less-clear brand voice and merchandising strategies ... AE falls behind the likes of Levi's and Abercrombie," said Patrick Ricciardi, analyst at Third Bridge.

The company, which maintained its fiscal 2026 comparable sales forecast for the second time this year, expects it to be up mid-single digits.

American Eagle's quarterly revenue of $1.38 billion edged past analysts' estimates of $1.37 billion, according to data compiled by LSEG.

It raised annual operating income target after including the impact of $196 million in tariff refunds received during the second quarter.

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Fashion

Saint Laurent Goes for Gold in Paris Show That May Be Vaccarello’s Finale

A model wears a creation as part of the Saint Laurent Womenswear Spring Summer 2027 collection presented in Paris, France, Tuesday, Sept. 29, 2026. (AP)
A model wears a creation as part of the Saint Laurent Womenswear Spring Summer 2027 collection presented in Paris, France, Tuesday, Sept. 29, 2026. (AP)
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Saint Laurent Goes for Gold in Paris Show That May Be Vaccarello’s Finale

A model wears a creation as part of the Saint Laurent Womenswear Spring Summer 2027 collection presented in Paris, France, Tuesday, Sept. 29, 2026. (AP)
A model wears a creation as part of the Saint Laurent Womenswear Spring Summer 2027 collection presented in Paris, France, Tuesday, Sept. 29, 2026. (AP)

Saint Laurent creative director Anthony Vaccarello unveiled a head-to-toe gold collection of slinky dresses and textured tailoring at Paris Fashion Week on Tuesday.

The spring/summer 2027 show marked 10 years since Vaccarello's first show for the Parisian label owned by luxury group Kering and came amid reports ‌he was ‌set to step down from ‌the ⁠role.

On a raised ⁠runway under a giant gold chandelier, models strode past wearing gold dresses with raised embroidery, gold brocade skirts and jackets with sharp collars, and gold trench coats.

The Eiffel ⁠Tower also glittered gold ‌in the ‌background of the show staged outdoors at the ‌Trocadero fountain, with front-row guests including ‌Blackpink singer Rosé, model Rosie Huntington-Whitely, and Oscar-winning actors Eddie Redmayne and Rami Malek.

Black gowns with billowing sleeves and ‌long trains were the final looks of the show, and Charlotte ⁠Gainsbourg ⁠performed a song in a classic Saint Laurent black suit before Vaccarello came out to applause from the crowd, smiling and waving.

Vaccarello is credited with expanding Saint Laurent's reach. The brand's revenues were down 6% last year but Kering said in July that it had returned to growth in the first half.

Fashion

Women's Fashion Week Kicks Off in Paris

A model walks the runway during the Giorgio Armani collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 27, 2026. (Photo by Stefano Rellandini / AFP)
A model walks the runway during the Giorgio Armani collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 27, 2026. (Photo by Stefano Rellandini / AFP)
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Women's Fashion Week Kicks Off in Paris

A model walks the runway during the Giorgio Armani collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 27, 2026. (Photo by Stefano Rellandini / AFP)
A model walks the runway during the Giorgio Armani collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 27, 2026. (Photo by Stefano Rellandini / AFP)

Paris Women's Fashion Week opens Monday with a debut show from South African brand MaXhosa Africa and a fresh collection from new-ish Canadian trendsetters Matieres Fecales, look to lift the gloom surrounding the sector.

A total of 67 catwalk shows for 2027 Spring-Summer have been planned for this Fashion Week, with dozens of other brands set to show their designs in private viewings and events around the French capital.

Industry big beasts Christian Dior and Saint Laurent will send their models out on Tuesday.

It could be a last show for Saint Laurent's Belgian designer Anthony Vaccarello, who has been the driving force behind the brand's success for the past decade but is reportedly heading for the exit.

If his departure is confirmed, he is unlikely to be the only creative director heading for the chop as label owners and chief executives look to revive their fortunes in a tough commercial environment for luxury brands.

At Balenciaga, Italian designer Pierpaolo Piccioli is reportedly in the sights of parent company Kering, having failed in the difficult task of maintaining sales levels achieved by his predecessor Demna, according to specialist blog Miss Tweed.

At Chloe, artistic director Chemena Kamali, in the job since 2023, is also being pushed towards the door over a lack of profitability, according to investigative outlet Glitz.

"There were the 'golden years' (for the sector) after Covid, a peak in 2023 and then a luxury market that stabilized," Pascal Morand, executive president of the French Haute Couture and Fashion Federation, told AFP.

"The major groups, mid-sized brands and young designers are not affected in the same way. Markets, outlets and business models are evolving," he said.

Although sales are falling for many brands, there are bright spots.

Since his arrival a year ago at the helm of Chanel, Matthieu Blazy has created a buzz and sales frenzy at the classic French label, with customers queueing outside some boutiques for his latest collections.

His Spring-Summer show takes place next Monday.

Another brand with reason for cheer is MaXhosa Africa, a luxury knitwear group founded in 2010 by textile designer Laduma Ngxokolo, who has already shown collections privately in Paris but has now been invited to join the official program.

On a mission to promote South African culture and the traditions of the Xhosa people, Ngxokolo counts Michelle Obama and Beyonce as fans.

With his first show on Monday, he will be hoping to emulate the success of Matieres Fecales, the Canadian brand which first appeared in March last year but has gone on to dress a host of celebrities and A-listers.

Its unusual name -- which means fecal matter in French -- was chosen to ensure that people who bought the brand's clothing only wanted it for the design, rather than the name on the label.

After events by Julie Kegels, Weinsanto, and Hodakova, the Matieres Fecales show at 7:00pm (1700 GMT) will bring the first day of Paris Fashion Week to a close.

Fashion

Cardi B Brings Star Power as Roberto Cavalli Goes Wild at Milan Fashion Week

A model walks the runway during the Roberto Cavalli collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 24, 2026. (AFP)
A model walks the runway during the Roberto Cavalli collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 24, 2026. (AFP)
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Cardi B Brings Star Power as Roberto Cavalli Goes Wild at Milan Fashion Week

A model walks the runway during the Roberto Cavalli collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 24, 2026. (AFP)
A model walks the runway during the Roberto Cavalli collection show as part of Women's Spring/Summer 2027 Milan's fashion week, on September 24, 2026. (AFP)

Cardi B was thronged by photographers as she arrived at the Roberto Cavalli runway show Thursday, adding star power to Milan Fashion Week.

Looking glamorous in an animal-print coat, dark sunglasses and a blowout, the rapper took her seat next to stylist Kollin Carter and the show could go on.

Fausto Puglisi turned up the volume as he evolved the Cavalli vocabulary. His Spring-Summer 2027 womenswear collection piled animal prints, florals and feathers onto the house’s familiar foundation of exposed skin and embellished denim.

Flowing robes topped low-rise jeans worn with thongs and bra tops. Cropped jeans glittered with crystals and sprouted feathers, while a mesh minidress erupted into crinkled golden ruffles. Chiffon skirts fell into long shredded hemlines, and animal prints were pieced together in a mishmash suggesting a rumble in the jungle. Prints clashed joyfully in an exuberant collection that played on all the Cavalli codes of glamour and animal instinct.

“What I like about Cavalli is that you have the possibility to create jeans as an object,” Puglisi said backstage. “You feel them, you have them and you put them in your wardrobe, and you feel better. It’s about joy.”