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

Besides ecommerce, retailer is contending with shifting spending habits

People walking by, in, and out of American Eagle store at a mall
American Eagle's progress hit a snag in third quarter, as gross margin took a hit from higher markdowns. Getty Images

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.

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@RichCollings Richard Collings is a retail reporter at Adweek.