American Eagle Posts Smaller-Than-Expected Loss as Loungewear Demand Surges

An Omani man passes in front of an American fashion brand, American Eagle Outfitters in City Center Mall in Muscat, Oman, February 11, 2019. Picture taken February 11, 2019. REUTERS/Hamad I Mohammed
An Omani man passes in front of an American fashion brand, American Eagle Outfitters in City Center Mall in Muscat, Oman, February 11, 2019. Picture taken February 11, 2019. REUTERS/Hamad I Mohammed
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American Eagle Posts Smaller-Than-Expected Loss as Loungewear Demand Surges

An Omani man passes in front of an American fashion brand, American Eagle Outfitters in City Center Mall in Muscat, Oman, February 11, 2019. Picture taken February 11, 2019. REUTERS/Hamad I Mohammed
An Omani man passes in front of an American fashion brand, American Eagle Outfitters in City Center Mall in Muscat, Oman, February 11, 2019. Picture taken February 11, 2019. REUTERS/Hamad I Mohammed

American Eagle Outfitters Inc (AEO.N) reported a smaller-than-expected quarterly loss on Wednesday, as people working from home due to the COVID-19 pandemic shopped online for comfortable athleisure and lounge apparel from its Aerie label.

The company debuted a new Aerie activewear line in July featuring soft athletic apparel, helping online sales more than double in the second quarter at the brand.

Total revenue fell 15% to $883.5 million in the three months ended Aug. 1, but beat expectations of $847.8 million.

Net loss attributable to the company was $13.8 million, or 8 cents per share, compared with a profit of $64.98 million, or 38 cents per share, a year earlier.

Excluding one-time items, the company reported a loss of 3 cents per share, smaller than analysts’ average estimate of a loss of 16 cents, according to IBES data from Refinitiv.

The company recorded $14.6 million in impairment, restructuring, and COVID-19 related charges in the latest quarter.



Sandal Scandal: Prada Credits New Design's Indian Legacy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi
Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi
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Sandal Scandal: Prada Credits New Design's Indian Legacy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi
Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Luxury fashion powerhouse Prada has acknowledged the ancient Indian roots of its new sandal design after the debut of the open-toe footwear sparked a furor among Indian artisans and politicians thousands of miles from the catwalk in Italy.

Images from Prada's fashion show in Milan last weekend showed models wearing leather sandals with a braided design that resembled handmade Kolhapuri slippers with designs dating back to the 12th century.

A wave of criticism in the media and from lawmakers followed over the Italian brand's lack of public acknowledgement of the Indian sandal design, which is named after a city in the western state of Maharashtra.

Lorenzo Bertelli, son of Prada's owners, responded to the sandal scandal in a letter to a trade group on Friday recognizing their Indian heritage.

"We acknowledge that the sandals... are inspired by traditional Indian handcrafted footwear, with a centuries-old heritage," Bertelli, Prada's head of corporate social responsibility, wrote in the letter to the Maharashtra Chamber of Commerce, seen by Reuters.

The sandals are at an early stage of design and it is not certain they will be commercialized, but Prada is open to a "dialogue for meaningful exchange with local Indian artisans" and will arrange follow-up meetings, he wrote.

A Prada spokesperson issued a statement acknowledging the sandal's inspiration from India, adding the company has "always celebrated craftsmanship, heritage and design traditions".

Prada products are beyond the reach of most Indians. Its men's leather sandals retail for $844 and up, while the Kolhapuri slippers, sold in Indian shops and street markets, start at about $12.

India's luxury market is small but growing fast, with rising numbers of rich people buying Louis Vuitton bags, Lamborghini cars, luxury homes and watches.

Conversely, Indian culture and crafts are increasingly finding their way into global brand designs. High-end jeweler Bulgari offers a $16,000 Mangalsutra necklace inspired by a chain traditionally worn by married women.

Bertelli's homage to Indian design was sent in a response to a complaint from the head of the trade group that represents 3,000 Kolhapuri sandal artisans, as the online uproar gathered momentum.

"From the dusty lanes of Kolhapur to the glitzy runways of Milan... will the world finally give credit where it's due?" India's DNA News posted on X.

Sambhaji Chhatrapati from the Kolhapur Royal family told Reuters by phone he was upset that craftsmen had not been acknowledged for the "history and heritage of 150 years."

Kolhapur-based businessman Dileep More, however, said images of the Prada sandal were bringing cheer to some artisans as they show their traditional product going global.

"They are happy that someone is recognising their work," he said.