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American Eagle Outfitters

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This article is about the clothing retailer. For other uses, see American Eagle.

American Eagle Outfitters, Inc.
American Eagle
Company typePublic
NYSE: AEO
S&P 600 component
IndustryRetail
Founded1977; 47 years ago (1977)
FounderJerry Silverman
Mark Silverman
Headquarters
SouthSide Works
77 Hot Metal Street
Pittsburgh, Pennsylvania
,
U.S.
Number of locations
1,182 stores (Feb. 2024)[1]
Area served
Worldwide
Key people
Jay Schottenstein (executive chairman and CEO)[2]
ProductsApparel, accessories, lingerie, personal care, footwear
RevenueIncrease US$5.261 billion (2023)[1]
Decrease US$222.717 million (2023)[1]
Increase US$170.038 million (2023)[1]
Total assetsIncrease US$3.557 billion (2023)[1]
Total equityIncrease US$1.736 billion (2023)[1]
Number of employees
40,000 (Feb. 2024)[1]
SubsidiariesAerie
Todd Snyder
Quiet Logistics
Websiteae.com

American Eagle Outfitters, Inc. is an American clothing and accessories retailer headquartered at SouthSide Works in Pittsburgh, Pennsylvania. It was founded in 1977 by brothers Jerry and Mark Silverman as a subsidiary of Retail Ventures, Inc., a company that also owned and operated Silverman's Menswear. The Silvermans sold their ownership interests in 1991 to Jacob Price of Knoxville, Tennessee.[3] American Eagle Outfitters is the parent company of Aerie, Unsubscribed and Todd Snyder.[4]

American Eagle retails jeans, polo shirts, graphic T-shirts, boxers, outerwear, and swimwear. American Eagle targets male and female university and high school students, although older adults also wear the brand.

In 1977, the first American Eagle Outfitters store opened in Twelve Oaks Mall in Novi, Michigan.[5] As of January 2023, the company operated 1,175 American Eagle stores, 175 Aerie stores, and 12 Todd Snyder stores across the US, Canada, Mexico, and Hong Kong.[2]

Development

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American Eagle Outfitters, Green Oak Village Place
An American Eagle Outfitters store at a mall in Taguig, Philippines
American Eagle Outfitters at a mall in Markham, Ontario, Canada

American Eagle's beginning was with the Silverman family, which owned and operated Silvermans Menswear. By the mid-1970s, two of the Silverman brothers—the third generation of Silvermans in the family business—were running the business. Jerry Silverman was the president and CEO, while his brother, Mark, served as executive vice-president and COO. The Silverman brothers were convinced they needed to diversify their product offerings in order to continue growing their company. They also recognized that the addition of new family-owned chains would then enable them to operate more than one store in the same mall. Their first attempt was to open American Eagle Outfitters in 1977, positioning it as a proprietor of brand-name leisure apparel, footwear, as well as accessories for men and women, emphasizing merchandise suited for outdoor sports, such as hiking, mountain climbing, and camping.[6] Stores were set up in shopping malls and a catalog was established. The chain grew for much of the 1980s. In 1989, the owners decided to refocus their business on American Eagle Outfitters, selling their other retail chains. At the time, there were 137 American Eagle Outfitters stores in 36 different states.

Despite the plans for quick growth after the reorganization, American Eagle Outfitters opened only 16 new stores by 1991 and the company was losing money. At this point, the Schottensteins, who had been 50% owners of the chain since 1980, bought out the Silverman family's interest. This change in leadership resulted in American Eagle finding its present niche: casual clothing for men and women selling private label clothes.[citation needed]

When the company began trading on the NASDAQ stock exchange in the second quarter of 1994, it had 167 stores and a healthy cash flow. [citation needed] With the cash infusion from the IPO, the company opened more than 90 new stores over the next year. Several new executives joined the company in 1995 and '96, leading to another change in the target demographic. [citation needed] Over the next five years, revenues quintupled to $1 billion by 2000.[3] AEO opened the first Canadian store in 2000.[7]

As of January 30, 2016, the company operated 949 AEO brand stores, and 97 stand-alone and 67 side-by-side Aerie stores in shopping malls, lifestyle centers, and street locations in the U.S., Canada, Mexico, Hong Kong, China, the United Kingdom, and internationally.[2] The company had 21 franchised stores operated by franchise partners in 10 countries.[4] On January 22, 2014, then-CEO Robert Hanson stepped down[8] and Jay Schottenstein became interim CEO.[9]

Finances and operations

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On March 15, 2005, the company adjusted its accounting of rent expenses and construction allowances after the Securities and Exchange Commission noted that a number of companies had been improperly logging these items.[10] Due to "disappointing product execution in the women's category", American Eagle posted only a 3% gain in its 2013 second-quarter profits and the stock price dropped.[11]

Products

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On 27 July 2020, American Eagle Outfitters revealed it would sell a new range of fitness wear called "Offline" by Aerie, targeted at consumers who want apparel that can be used for both their workouts and relaxation. [12]

Corporate and headquarters

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American Eagle's Headquarters

In mid-2007, American Eagle moved its headquarters from Warrendale, Pennsylvania, to a more urban location at the SouthSide Works complex in Pittsburgh. The cost of the buildings and adjacent property was approximately $21 million (excluding interior finishing and additional construction costs). The addresses of the buildings are 19 Hot Metal Street and 77 Hot Metal Street, with the numbers symbolizing the first store opening in 1977. The Southside Works Campus includes a private garage, a lab store for each brand, a photo studio, and an in-house cafeteria. Other offices are in New York (design and production).[13]

Franchise agreement

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In June 2009, the company signed the franchisee agreement with M. H. Alshaya, one of the leading retailers in the Middle East.[14] The agreement saw the introduction of the first stores outside North America, with the first two opening in Dubai and Kuwait on March 16 and 25, 2010, respectively, and another that opened on October 15, 2011, in Kaslik, Lebanon. Another opened in June 2012 in Hamra Street, Beirut, followed by one in Beirut City Centre, Hazmieh.[citation needed]

Logistics

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The company maintains distribution centers in Hazleton, Pennsylvania; Ottawa, Kansas; and Mississauga, Ontario.[15]

Stores

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An American Eagle store in a mall, with older signage that includes "Outfitters".

Items are placed on wooden shelving, tables, or clothes racks. The clothes in AEO Factory stores are hung on basic black hangers, and AEO stores have wooden hangers. There is usually a flat-screen television hanging in the back of the store or behind the cash wrap. The floors are typically wood or concrete. The theme and displays change based on seasonal lines and promotions.

Subsidiaries

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aerie

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Main article: Aerie (clothing retailer)
Aerie store in the SouthSide Works area of Pittsburgh

In February 2006, American Eagle launched the aerie lingerie sub-brand, targeting American 15- to 22-year-old females.[16] In addition to lingerie such as bras and other undergarments, the aerie line sells dorm wear, active apparel, loungewear, accessories and sleepwear. What started as a sub-brand quickly became a standalone concept in its own right, featuring a complete fitness line, called aerie f.i.t. The aerie brand is sold in American Eagle Outfitters stores, on the American Eagle website, and in stand-alone aerie retail stores. The first stand-alone aerie store opened in August 2006 in Greenville, South Carolina,[17] and was followed by two more test stores later that year. As of December 2010, there were 147 stand-alone aerie stores in the U.S. and Canada.[18] Aerie has started a campaign that focuses on promoting models' real bodies. This entails their slogan #AerieREAL and adding to their advertisements that models have not been retouched. In this way they take a stand against the use of photo manipulation in media. Iskra Lawrence, while she models for the lingerie line, is also the global role model for the brand.[19]

Martin + Osa

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The company's second stand-alone lifestyle concept launched in 2006 and targeted men and women age 28 to 40.[20] It featured cashmere sweaters and casual clothing for an older target audience. It also sold products by Fred Perry, Ray-Ban, Adidas, Onitsuka Tiger, and HOBO International. In March 2010, management announced that all 28 Martin + Osa stores would be closed, after a failure in retail markets, causing AEO, Inc. to lose up to $44 million.[21][22]

77kids

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In October 2008, American Eagle released and launched 77kids, a line of clothing aimed at children aged two to ten.[23] Initially an online only concept, AEO opened its first 77kids store on July 15, 2010, in The Mall at Robinson in Pittsburgh,[24] and eight others followed that year. Expansion continued throughout FY2011. 77kids stores, targeted at younger children, featured interactive games and activities throughout the stores that children could play with while shopping.[25]

American Eagle Outfitters announced on May 15, 2012, that it would sell or close all 22 77kids stores by the end of July 2012.[26][27] Robert Hanson, who became CEO in January 2012, said 77kids had a loss after taxes of roughly $24 million on sales of $40 million in the 2011 fiscal year. On August 3, 2012, American Eagle Outfitters completed the sale of its 77kids to Ezrani 2 Corp, a company formed by Ezra Dabah, the former chairman and CEO of The Children's Place.[28] Ezrani renamed the store "Ruum" in 2013.[29]

Tailgate and Todd Snyder

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In November 2015, American Eagle Outfitters acquired Todd Snyder's eponymous label, as well as his Tailgate Clothing Company, a brand centered on vintage-style collegiate apparel.[30] American Eagle initially focused on Southeastern Conference and Big Ten colleges, hoping to gain more popularity among its target demographic of teenagers and college students.[31]

Bluenotes'

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After its acquisition of Thiftys from Dylex, the 107 stores were rebranded as Bluenotes' in 2000, then sold off in 2004.

Unsubscribed

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American Eagle Outfitters created a new upmarket brand focused on sustainable quality goods in 2020. Boutiques can be found in prestigious resort neighborhoods.

Quiet Logistics

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American Eagle Outfitters announced a $350 million acquisition of Quiet Logistics on November 2, 2021.[32] The acquisition was completed on December 29, 2021.[33]

International expansion

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American Eagle opened its first Canadian store in 2001 after it purchased assets of Dylex. In 2010, AEO opened stores in Kuwait, Riyadh, and Dubai. A store in Kaslik, Lebanon, opened on October 15, 2011. A store in Cairo, Egypt, opened in late 2011. In September 2011, two stores opened in Moscow, Russia. Its first store in Jordan opened in November 2011 in the brand-new Taj Mall. Its first store in Tokyo, Japan opened on April 18, 2012. The first store in Tel Aviv, Israel, opened in February 2012,[34] after the Israeli-based clothing retailer FOX signed a contract with AEO, and expanded to Jerusalem.[35] There are also stores in Beijing, Shanghai and Hong Kong.[36] American Eagle Outfitters opened its first store in the Philippines in March 2013.[37]

American Eagle is also opening stores in Mexico. The first opened in Mexico City at Fashion Mall Perisur on February 20, 2013, and at Centro Santa Fe in June. Another opened in Guadalajara later in 2013 at Fashion Mall Galerías Guadalajara.[38] In 2014 the company financed the rescue and renovation of the Jardín Edith Sánchez Ramírez pocket park in Mexico City.

American Eagle expanded to the U.K. in November 2014, opening stores in Westfield London, Westfield Stratford City, and Bluewater.[39] The Westfield London store opened on November 14, 2014, the Westfield Stratford City store on November 17, 2014, and the Bluewater store on November 19, 2014. All UK operations have ceased, with the UK website closed and all UK stores closed by the end of July 2017.[40][41]

American Eagle Outfitters opened its first store in Muscat, Oman, on October 3, 2015.[42] The company made its debut in the Indian market in June 2018 with first store launched in DLF Mall of India, Noida.[43] Today it operates 17 stores across the country.

AEO entered the Chilean market in September 2015, with the opening of its first store in the Parque Arauco shopping center. After its arrival in the Chilean market, the company's expansion was concentrated in Santiago.

In 2019, American Eagle Outfitters became one of only two major clothing companies with commitments in line with the Paris Agreement's goal of limiting global average temperature increase to 1.5 degrees Celsius.[44]

In 2020, American Eagle Outfitters opened its first store in Prague, Czech Republic, in the factory outlet center Fashion Arena Prague Outlet.[45] In 2023, AEO opened its first store in Uruguay, Punta Carretas Shopping.[46]

Controversies

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Strike

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In 2004, the textile and apparel workers union UNITE HERE launched the "American Vulture" back-to-school boycott of American Eagle[47] in protest of alleged workers' rights violations at the company's Canadian distribution contractor National Logistics Services (NLS). On the 2007 second-quarter conference call,[48] CEO James O'Donnell clarified the American Eagle's relationship with NLS and its effect on business. He explained,

We owned NLS with the acquisition of Braemar back in 2000, and we subsequently sold off NLS in 2006, and we are currently a customer of NLS... We have really no involvement at all with Unite Here and NLS. Our only involvement with NLS is basically as a customer, and there have been some allegations made, I think, to some of, to the public about it affecting our business. I can tell you right now it has not affected our business.

Abercrombie & Fitch lawsuits

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Since 1999, Abercrombie & Fitch has sued American Eagle Outfitters at least three times for allegedly copying its designs and its advertisements. On all occasions, American Eagle prevailed in court on the grounds that A&F cannot stop it from presenting similar designs since such designs cannot be copyrighted in the United States. Nevertheless, American Eagle clothing designs have since trended away in appearance from Abercrombie & Fitch designs. American Eagle merchandise is considered "retro/vintage" cost-efficient clothing, whereas Abercrombie & Fitch merchandise has become an internationally known "near-luxury" line of clothing with "preppy", high-grade, and high-priced fashions, on a level right below that of companies such as Polo Ralph Lauren.[49] Judges have generally ruled that giving Abercrombie exclusive rights to market its clothing in a certain way "would be anti-competitive."[50]

International stores

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Locations in the U.S., Canada, Mexico, and Hong Kong are operated directly by American Eagle, whereas other locations are operated under license agreements with third parties.[1]

Africa:

Americas:

Asia:

Europe:

See also

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References

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  1. ^ a b c d e f g h American Eagle Outfitters, Inc. Form 10-K for 2023 Annual Report (PDF). U.S. Securities and Exchange Commission (Report). Retrieved April 28, 2024.
  2. ^ a b c "AEO". finance.yahoo.com. Retrieved June 25, 2021.
  3. ^ a b History of American Eagle Outfitters, Inc. – FundingUniverse Archived March 4, 2012, at the Wayback Machine. Fundinguniverse.com. Retrieved on July 23, 2013.
  4. ^ a b "American Eagle Outfitters, Form 10-K, Annual Report, Filing Date Mar 15, 2012" (PDF). secdatabase.com. Archived (PDF) from the original on October 16, 2013. Retrieved January 5, 2013.
  5. ^ "American Eagle Outfitters - About AEO". American Eagle Outfitters. Archived from the original on January 27, 2022.
  6. ^ "History of American Eagle Outfitters, Inc. – FundingUniverse". www.fundinguniverse.com. Archived from the original on June 1, 2017. Retrieved April 5, 2013.
  7. ^ "American Eagle Outfitters opens first PH store". ABS-CBN News. Archived from the original on February 2, 2017. Retrieved January 27, 2017.
  8. ^ Karr, Arnold J. (January 22, 2014). "Robert Hanson Exits American Eagle". WWD. Retrieved January 22, 2014.
  9. ^ Zaccagnini, Kristen (January 22, 2014). "American Eagle Outfitters Names Jay Schottenstein Interim CEO". Market Watch by the Wall Street Journal (reprinting BUSINESS WIRE). Retrieved January 22, 2014.
  10. ^ "American Eagle to restate results". Archived from the original on January 14, 2015. Retrieved September 30, 2013.
  11. ^ Young, Vicki M. (August 21, 2013). "American Eagle Posts 3% Gain in Q2 Profits". WWD. Archived from the original on April 11, 2014. Retrieved August 21, 2013.
  12. ^ "American Eagle Outfitters Launches a New Brand, "Offline" Activewear". The Motley Fool. July 29, 2020. Retrieved August 3, 2020.
  13. ^ "American Eagle Outfitters - Investor Relations - Press Release". Retrieved August 25, 2017.
  14. ^ "American Eagle Outfitters, Form 8-K, Current Report, Filing Date May 29, 2009". secdatabase.com. Archived from the original on October 15, 2013. Retrieved January 6, 2013.
  15. ^ "American Eagle - Distribution Centers". Archived from the original on September 7, 2015. Retrieved January 13, 2016.
  16. ^ Moin, David (February 26, 2006). "American Eagle's Strategy for 'aerie' Intimates". WWD.
  17. ^ "American Eagle Outfitters Introduces New Line of Dormwear and intimates" (Press release). PRNewswire. August 17, 2006. Archived from the original on May 12, 2009. Retrieved March 10, 2009.
  18. ^ "American Eagle Outfitters - Investor Relations - Press Release". Phx.corporate-ir.net. Archived from the original on July 12, 2012. Retrieved November 25, 2011.
  19. ^ "American Eagle Outfitters Men's & Women's Clothing, Shoes & Accessories". American Eagle Outfitters. Archived from the original on January 29, 2017.
  20. ^ "American Eagle Outfitters, Form 8-K, Current Report, Filing Date Oct 24, 2005" (PDF). secdatabase.com. Archived (PDF) from the original on March 19, 2013. Retrieved January 6, 2013.
  21. ^ "American Eagle Outfitters, Form 8-K, Current Report, Filing Date Mar 9, 2010" (PDF). secdatabase.com. Archived (PDF) from the original on October 15, 2013. Retrieved January 6, 2013.
  22. ^ "American Eagle to open Martin + OSA store in Dallas". Dallas Business Journal. January 3, 2006. Archived from the original on December 2, 2008. Retrieved January 7, 2009.
  23. ^ "American Eagle Outfitters, Form 8-K, Current Report, Filing Date Nov 7, 2008" (PDF). secdatabase.com. Archived (PDF) from the original on June 5, 2014. Retrieved January 6, 2013.
  24. ^ "77kids by american eagle Launches E-Commerce Web Site Offering "Kid Cool" Clothing and Accessories" (Press release). BusinessWire. October 23, 2008. Archived from the original on December 2, 2008. Retrieved November 28, 2008.
  25. ^ "Marketing to kids gets more savvy with new technologies - USATODAY.com". USATODAY.COM. Retrieved January 27, 2017.
  26. ^ "American Eagle Outfitters, Form 8-K, Current Report, Filing Date May 24, 2012". secdatabase.com. Archived from the original on October 15, 2013. Retrieved January 6, 2013.
  27. ^ "american eagle sells 77kids business". www.bizjournals.com. Archived from the original on January 30, 2014. Retrieved February 16, 2018.
  28. ^ "American Eagle Outfitters, Form 8-K, Current Report, Filing Date Aug 9, 2012" (PDF). secdatabase.com. Retrieved January 6, 2013.
  29. ^ "/ccpa/". TribLIVE.com. Archived from the original on January 31, 2013. Retrieved July 16, 2021.
  30. ^ American Eagle Acquires Todd Snyder in $11 Million Deal Archived December 22, 2019, at the Wayback Machine Women's Wear Daily
  31. ^ Tabuchi, Hiroko (November 3, 2015). "A New Look, and Label, for American Eagle Outfitters". The New York Times. Archived from the original on May 23, 2018. Retrieved May 22, 2018.
  32. ^ Berger, Paul (November 2, 2021). "American Eagle Outfitters to Buy Quiet Logistics for $350 Million". Wall Street Journal. Archived from the original on November 4, 2021. Retrieved November 3, 2021.
  33. ^ Borneman, Jim (December 31, 2021). "American Eagle Outfitters Completes Quiet Logistics Acquisition". Textile World. Retrieved January 3, 2022.
  34. ^ "American Eagle coming to Israel - Israel Business, Ynetnews". Ynetnews. Ynetnews.com. June 20, 1995. Archived from the original on February 2, 2012. Retrieved November 25, 2011.
  35. ^ "The Gap will close in Israel, and it's not just because of its clothes". The Times of Israel. Retrieved January 25, 2017.
  36. ^ "American Eagle Taking Flight to Japan - Specialty Stores - Retail". WWD.com. December 21, 2010. Retrieved November 25, 2011.
  37. ^ "American Eagle Outfitters opens first PH store". ABS-CBN News. March 2013. Archived from the original on October 12, 2013. Retrieved July 10, 2013.
  38. ^ American Eagle en México: una posibilidad a corto plazo - Moda - Masaryk.tv | My Web Lifestyle. Masaryk.tv. Retrieved on July 23, 2013.
  39. ^ Ruddick, Graham (June 30, 2014). "American Eagle confirms UK arrival". Telegraph. Archived from the original on November 7, 2014. Retrieved November 7, 2014.
  40. ^ "@AEO_UK". Twitter. American Eagle UK. Archived from the original on November 26, 2022. Retrieved November 7, 2014.
  41. ^ "American Eagle is latest US brand to join flight from UK". Drapers. Archived from the original on August 4, 2021. Retrieved August 3, 2017.
  42. ^ "American Eagle Outfitters Launched in Oman". December 3, 2015. Archived from the original on February 17, 2018. {{cite journal}}: Cite journal requires |journal= (help)
  43. ^ "American Eagle Outfitters opens the first store in India". June 14, 2018. Archived from the original on January 6, 2019. Retrieved January 6, 2019.
  44. ^ Cernansky, Rachel (October 17, 2019). "Only two big brands do enough to fight climate change, report claims". Vogue Business. Retrieved May 5, 2021.
  45. ^ a b "Twenty-five new brands came to the Czech market last year". www.retailguide.cz. January 13, 2021. Archived from the original on July 15, 2021. Retrieved July 15, 2021.
  46. ^ "American Eagle abre su primer local en el país". EL PAIS. March 10, 2023. Retrieved March 17, 2023.
  47. ^ "www.americanvulture.org". www.americanvulture.org. Archived from the original on October 11, 2011. Retrieved November 25, 2011.
  48. ^ Transcripts, SA (August 21, 2007). "American Eagle Outfitters F2Q07 (Qtr End 8/4/07) Earnings Call Transcript". Archived from the original on March 3, 2016. Retrieved August 25, 2017.
  49. ^ "American Eagle Wins Abercrombie & Fitch Lawsuit in U.S. Court of Appeals" (Press release). PR NewsWire. February 18, 2002. Archived from the original on December 2, 2008. Retrieved November 30, 2008.
  50. ^ "Abercrombie's Lawsuit Against Rival Dismissed". Los Angeles Times. July 16, 1999. Archived from the original on December 1, 2008. Retrieved November 30, 2008.
  51. ^ "Omanis to run Majid Al Futtaim's 3 new malls". Archived from the original on August 26, 2017. Retrieved August 25, 2017 – via PressReader.
  52. ^ "AMERICAN EAGLE". www.isicgreece.gr. Archived from the original on November 7, 2018. Retrieved November 7, 2018.
  53. ^ "American Eagle Locations Store Finder". storelocations.ae.com. Retrieved April 19, 2023.
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