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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

Ralph Lauren Opens Fur-free New York Fashion Week

Models walk the runway during the Ralph Lauren Spring 2027 Collection show during New York Fashion Week in New York on September 9, 2026. (Photo by ANGELA WEISS / AFP)
Models walk the runway during the Ralph Lauren Spring 2027 Collection show during New York Fashion Week in New York on September 9, 2026. (Photo by ANGELA WEISS / AFP)
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Ralph Lauren Opens Fur-free New York Fashion Week

Models walk the runway during the Ralph Lauren Spring 2027 Collection show during New York Fashion Week in New York on September 9, 2026. (Photo by ANGELA WEISS / AFP)
Models walk the runway during the Ralph Lauren Spring 2027 Collection show during New York Fashion Week in New York on September 9, 2026. (Photo by ANGELA WEISS / AFP)

Legendary US designer Ralph Lauren on Wednesday kicked off New York Fashion Week with his namesake brand's Spring/Summer 2027 collection, as the industry showcase implements its first full ban on fur on the runway.

The 86-year-old designer, whose preppy aesthetic has influenced American style for decades, featured looks that emphasized his signature colors, navy blue and white.

Hints of gold, beige and dusty rose completed the palette, AFP reported.

Oscar-winning actresses Viola Davis and Ariana DeBose joined "Wicked" star Cynthia Erivo in the front row at the show, which took place on the eve of fashion week's official launch.

The label said the collection sought to upend "traditional notions of chic" and rework historical silhouettes. Suit trousers were paired with a leather jacket, a boater hat and ballet slippers.

Of course, there were gowns that the A-list Hollywood talent could easily wear to red carpet events.

US fashion house Coach, known for its handbags and other leather accessories, hosted the only other show on Wednesday -- a calm night before the fashion frenzy picks up pace, beginning in New York before heading to London, Milan and Paris.

Both brands have found success this year despite a slowing luxury market due to their more accessible branding, with each reporting double-digit revenue growth in the last quarter.

New York Fashion Week gets into full swing on Thursday, with Henry Zankov debuting his first collection as artistic director at Diane von Furstenberg.

Other shows on Thursday include Proenza Schouler, Christian Siriano, Tory Burch and Tommy Hilfiger -- which made waves with its latest ad campaign featuring Super Bowl champion Travis Kelce, who happens to be Taylor Swift's husband.

Upcoming shows to watch out for during the roughly 70 collections set to hit New York runways this week include Michael Kors and Calvin Klein on Friday, Carolina Herrera on Monday and Thom Browne's show to end the week on Tuesday.

In December, the Council of Fashion Designers of America (CFDA), which organizes New York Fashion Week, announced that it would ban animal fur from its official events beginning this month.

Fashion

Zara Owner Inditex Reports Strong August Trading Amid Heatwaves

A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)
A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)
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Zara Owner Inditex Reports Strong August Trading Amid Heatwaves

A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)
A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)

Zara owner Inditex reported a better-than-expected start to its autumn trading on Wednesday, with currency-adjusted sales up 9% in August, even as extreme heat across Europe reshapes shopping behavior in its biggest market.

The fast-fashion giant made €11 billion ($12.8 billion) in sales in its second quarter running May to July, a strong showing in a summer of high energy prices and weak ‌consumer sentiment amid ‌the ongoing Iran war.

"These excellent results ‌highlight ⁠the extraordinary capabilities of ⁠our teams," CEO Oscar Garcia Maceiras said in a statement, adding that it was operating in a "highly complex global environment."

Inditex is flying high: its share price hit a record of €59.1 last month, and the Hong Kong IPO filings of ultra-cheap fashion platform Shein revealed ⁠a sales slowdown, evidence that the competitive pressure ‌on European fast-fashion groups ‌like Zara and H&M is easing.

The Spanish company is expanding ‌its cheapest brand, Lefties, into Britain, with plans to ‌open in Germany next year, as Inditex tries to capture more spending from lower-income shoppers who may have been alienated by Zara's push into higher price points.

Inditex's gross profit grew 8.3% ‌in the first half to €11.6 billion, with a gross margin of 58.7%.

Retailers in ⁠Europe and the US are having to change their sourcing schedules to adapt to hot weather that is stretching into the back-to-school season when stores usually start selling jackets and coats.

Western Europe had its hottest June and July on record, according to European Union scientists, as climate change pushes temperatures up and fuels wildfires across the region.

Inditex has been spending significantly on revamping stores and improving its logistics; RBC analysts estimate its annual capital expenditure is around three times that of its Swedish rival H&M.

Fashion

Naomi Osaka Exits US Open, but Not Before Displaying One More ‘Swaggy’ Fashion Ensemble

Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)
Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)
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Naomi Osaka Exits US Open, but Not Before Displaying One More ‘Swaggy’ Fashion Ensemble

Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)
Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)

Naomi Osaka may not have gone out of the US Open with much of a bang. But she surely went out with a burst — of color, and a bit of swag.

The two-time US Open champion lost a lopsided fourth-round match on Monday to Elena Rybakina. But she continued to make her mark as the undisputed fashion queen on tour.

Osaka, already known for her walk-on fashion reveals at tournaments, has been upping her game at the year's final major with a series of dramatic ensembles — all with a basketball theme, as her sponsor, Nike, honors the New York Knicks' championship win.

For her last look, she arrived on court Monday in a coat of many colors: a fur-trimmed cloak designed by Brooklyn-based label KidSuper.

“I felt really swaggy when I put it on," Osaka said after the match. “I feel like it embodied New York a lot."

For her increasingly dramatic looks the past week or so, Osaka has worked with celebrity stylist Law Roach — also known as Zendaya's stylist — displaying the work of multiple designers.

Monday's eclectic walk-on ensemble from KidSuper, the label of designer Colm Dillane, included not only the lavish coat, but a headband that echoed the blue, red and white NBA logo — only now, displaying a racket-wielding tennis player, not a basketball player.

For her first-round match a week ago, Osaka channeled NBA great Allen Iverson in a long, white tulle skirt and a dramatic gray, hooded robe. When she removed the hood, Osaka's hair was in cornrows under a headband, recalling Iverson's look when was the NBA MVP while playing for the Philadelphia 76ers. Her ensemble was designed by Who Decides War, the New York-based streetwear brand.

For round two, Osaka arrived on court in an ensemble by Thom Browne, with a flowing white jacket embroidered with crossed tennis rackets. Underneath, her tennis skirt's mesh fabric resembled a basketball net.

For the third round, Osaka, a four-time Grand Slam champion, wore the label Monse — an oversized hybrid of a gray suit jacket and hoodie sweatshirt over flowing gray fleece pants, an outfit meant to mesh business wear with sports wear.

After her loss Monday, Osaka was asked if she was disappointed that there may have been other fashion looks she'd been planning to display, had she remained longer.

“I mean, I think there’s always something, you know?” Osaka said. “I feel like that’s a way that I can have fun and sort of just excite myself, also.”

But the 28-year-old — who noted that she’d been hampered during Monday' match by pain in her leg — was philosophical about her loss.

“Maybe I’m just getting older, but I don’t feel sad,” Osaka said. “I think, also, if I reflect on my career and the things that I’ve been able to do, there’s nothing that I regret or there’s nothing that I’m sad about ... If I win another Grand Slam, it’s not going to change my life.”