Sales of jeans and tops by American Eagle Outfitters Inc accelerated after the apparel retailer reported a first-quarter results beat on increased spending, driven by stimulus checks.

Stimulus-led spending confidence among customers allowed the apparel retailer to cut promotions and sell at full prices, pushing the company's gross margin to 42.2 per cent from 36.7 per cent in 2019.

The company is also optimistic about the back-to-school season denim trends as it revamps fashion styles to cater to the looser fits that millennials and teens are sporting these days.

Pent-up demand for loose-fit jeans, tops and leggings coupled with the $1,400 stimulus checks that Americans received in March lifted the company's sales for the first time since the onset of the pandemic.

The company also reported a 57 per cent surge in digital revenue in the first quarter compared to 2019 levels, fueled by a redesigned app and enhanced curbside and in-store pickup features.

Excluding one-time items, the company earned a profit of 48 cents per share, above analysts' average estimate of a profit of 46 cents per share, according to IBES data from Refinitiv.

Total net revenue surged nearly 90 per cent to $1.03 billion compared with expectations of $1.02 billion.