Abercrombie's little cousin... American Eagle doesn't fill its stores with cologne and abs — Instead, the retailer is adding CBD-infused lotions to its button-downs next month. In the meantime, shares plummeted 12% Wednesday because of the following contradiction in last quarter's performance:
Bralettes experienced "renewed excitement"... American Eagle's words. It's talking about its Aerie brand's signature anti-push-up bra. Aerie's Photoshop-less models are (actually) stealing market share from Victoria's Secret's ultra-sexualized ones. Now AE is opening 40 standalone Aerie stores and expanding the brand from underwear to yoga pants.
Spinoff brands are the new black... While American Eagle's style stays grounded, its Aerie line has taken off. These spinoff brands let the parent brand catch trends, try-on new looks, take risks, and scare corporate. But your Snacks team is noticing key apparel spinoff brands outpacing their parents. Check your closet for examples: