Despite Betting on Aerie, American Eagle's Margins Decline on Markdowns

Besides ecommerce, retailer is contending with shifting spending habits

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American Eagle is betting its future on the rollout of the Aerie lifestyle brand and as a leader on inclusivity, but the retailer’s progress hit a snag in the third quarter as both gross profit and operating income fell, according to the company’s quarterly earnings report.

The retailer’s gross profit margin for the quarter ended Nov. 2 declined to 38.2% as a rate of revenue, or $407 million, from 39.8% ($399 million) for the same period in 2018, while its operating income dipped to 9.7%

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