Aerie, American Eagle’s lingerie brand which is sold in the UK, has posted 21% comparable growth in Q3, in comparison to Victoria’s Secret 1% comparable decline last quarter.
Although Aerie still only holds a single-digit share of the lingerie market, compared to Victoria’s Secret’s larger share, it is growing at a much faster rate.
Aerie was launched 10 years ago and in addition to lingerie sells active apparel, loungewear, sleepwear and accessories. It is in direct competition with Victoria’s Secret’s Pink brand.
The American brand promoted an airbrush-free campaign two years ago which proved to be an effective marketing device. The idea behind the #AerieReal campaign was to represent “real” women so that young customers were encouraged to embrace their own beauty, instead of trying to live up to the ideal often promoted by the fashion industry.
Speaking in an investors’ conference call, Aerie president, Jen Foyle, said that the brand “saw strength across all channels” with a 15% year-over-year increase in new customers, and that “traffic and transactions increased in stand-alone stores and online.”
Stock advisor Motley Fool reported that Foyle also noted that sales of bras, underwear, and apparel remained robust, and that bralettes and novelty fashion items “continued to post strong results.”
The table below indicates Aerie’s recent growth:
|3Q 2015||4Q 2015||1Q 2016||2Q 2016||3Q 2016|