Inflation and Apparel Slump Weigh on American Eagle, But Aerie Brand Still Soaring

American Eagle Outfitters reported profit and revenue that matched analysts' expectations in the first quarter.
The company cut its full-year revenue forecast, citing high inflation and lower demand for clothing.
American Eagle's Aerie brand continued to report double-digit revenue growth, in contrast with the namesake brand's decline.
Gross margin increased from a year ago, benefiting from lower costs, even as revenue rose slightly.
Shares of American Eagle have fallen about 14% so far this year.