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American Girl Celebrates 40 Years Amid Revenue Decline

2/22/2026

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Story summary
  • American Girl marks its 40th anniversary as revenue falls from more than $600 million to about $200 million.
  • Despite the decline, the brand has posted five consecutive quarters of sales growth.
  • The New York City flagship store remains a nostalgic hub where customers connect with dolls such as Molly McIntire, symbolizing bravery and resilience.
  • Analysts say American Girl must adapt to modern play patterns and an aging customer base.