American Eagle Outfitters

American Eagle Outfitters

Overview
American Eagle Outfitters is an American clothing and accessories retailer based in Pittsburgh, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

. It was founded in 1977 by Mark and Jerry Silverman as a subsidiary of Retail Ventures, Inc., a company which also owned and operated Silverman's Menswear. The Silvermans sold their ownership interests in 1991.

The brand targets 15- to 25-year-old males and females, with 900+ retail locations in the U.S.
Discussion
Ask a question about 'American Eagle Outfitters'
Start a new discussion about 'American Eagle Outfitters'
Answer questions from other users
Full Discussion Forum
 
Recent Discussions
Encyclopedia
American Eagle Outfitters is an American clothing and accessories retailer based in Pittsburgh, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

. It was founded in 1977 by Mark and Jerry Silverman as a subsidiary of Retail Ventures, Inc., a company which also owned and operated Silverman's Menswear. The Silvermans sold their ownership interests in 1991.

The brand targets 15- to 25-year-old males and females, with 900+ retail locations in the U.S. and Canada and an online store. On March 16, 2010, American Eagle Outfitters opened its first store in the Middle East at Mirdif City Centre in Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...

.

Some of the brand's more popular products are low-rise jeans
Low-rise jeans
Low-rise jeans, worn by both men and women, are jeans intended to sit low on, or below, the hips. They are also called lowcut jeans, hipsters, hip-huggers and lowriders. Usually they sit at least 8 centimetres lower than the belly button...

, polo shirts, graphic T-shirts
T-shirt
A T-shirt is a style of shirt. A T-shirt is buttonless and collarless, with short sleeves and frequently a round neck line....

, henley shirt
Henley shirt
A henley shirt is a collarless men's pullover shirt, characterized by a long placket beneath the round neckline, usually having 2-5 buttons. It essentially resembles a collarless polo shirt. The sleeves may be either short or long sleeve, and it can be made in almost any fabric, although cotton,...

s, boxers and briefs, outerwear
Outerwear
-List of outerwear:* Jacket* Coat* Mittens* Cloaks* Hats* Poncho* Rain pants* Trousers* Scarves*Gloves...

, and swimwear.

Development


When the Silvermans first opened an American Eagle Outfitters store in 1977, they were looking to diversify their menswear
Fashion
Fashion, a general term for a currently popular style or practice, especially in clothing, foot wear, or accessories. Fashion references to anything that is the current trend in look and dress up of a person...

 business. Stores were set up in shopping mall
Shopping mall
A shopping mall, shopping centre, shopping arcade, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area — a modern, indoor version...

s 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 this time, there were 137 American Eagle Outfitters stores including 37 in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

.

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 founding 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
Private label
Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...

 clothes. AE opened the first Canadian store in 2001.

When the company began trading on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...

 stock exchange in the second quarter of 1994, it had 167 stores and a healthy cash flow. With the cash infusion from the IPO, the company opened more than 90 new stores within the next year. Several new executives joined the company in 1995 and '96, leading to another change in the target demographic. The company now wanted to reach more women and focus on people between the ages of 18 and 32. The strategy worked, and over the next five years, revenues quintupled to $1 billion by 2000. American Eagle claimed 1101 stores across three brands (American Eagle Outfitters, Aerie, and Martin + Osa) in November 2008 and $3 billion in revenues for the most recent fiscal year.

American Eagle Outfitters's Net Sales by Geographical Regions for the Year Ended 2009
Geographic Region Total Sales (in thousands)
United States 2,707,261
Canada 281,605

Corporate and headquarters


In mid-2007, American Eagle Outfitters moved its headquarters from Warrendale, Pennsylvania
Warrendale, Pennsylvania
Warrendale is a northern suburb of Pittsburgh, Pennsylvania. It is located in the northwestern corner of Allegheny County. It is the home to the corporate headquarters of Rue 21 and Joy Mining Machinery, as well as the United States Postal Service Pittsburgh Network Distribution Center, one of 21...

 to a more urban location at the SouthSide Works
Southside Works
SouthSide Works is an open-air retail, office, entertainment, and residential complex located on the South Side of the city of Pittsburgh and just across the Monongahela River from the Pittsburgh Technology Center and the University of Pittsburgh...

 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 facilities of the Southside Works Campus include a Private Garage, a Lab Store for each brand, Photo Studio and in-house Cafeteria. Other offices are located in NYC (Design and Production).

Staffing Partnership


In June 2008, the company signed an exclusive staffing agreement with JBCStyle, a leading fashion & retail recruiting agency with offices in New York City, Los Angeles & San Francisco. This agreement encompassed all of American Eagle Outfitters' freelance staffing needs in New York City as well as any outsourced permanent search. The company has continued to grow this partnership and has opted to engage JBCStyle's sister Company Jonathan Beth Consultants to manage payroll for all corporate hourly employees. American Eagle Outfitters has renewed its agreement with JBCStyle for two subsequent years.

Franchisee Agreement


In June 2009, the company signed the franchisee agreement with M. H. Alshaya, one of the leading retailers of the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

. The agreement will see the introduction of the first stores outside the North American market, with the first two opening in Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

 and Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

 on March 16 and March 25 2010, respectively and a store opening on October 15, 2011 in Kaslik
Kaslik
Kaslik is a Lebanese Maronite village located in the Keserwan District of Mount Lebanon....

 near Beirut
Beirut
Beirut is the capital and largest city of Lebanon, with a population ranging from 1 million to more than 2 million . Located on a peninsula at the midpoint of Lebanon's Mediterranean coastline, it serves as the country's largest and main seaport, and also forms the Beirut Metropolitan...

, Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...

.

Stores and other brands


Items are placed on white wooden shelving, tables, or clothes racks. The clothes in high volume stores are hung on wooden hangers, and lower volume store have basic black hangers. There are also usually sofas/chairs in the back of the store, usually along with a flat screen television. The floors are typically wood or concrete. The theme and displays change based on seasonal lines and promotions.

In addition to its namesake brand, the company has developed and announced plans for several new brand and concept initiatives poised to drive new growth as the brand nears saturation in current markets.

aerie



In February 2006, American Eagle launched the aerie intimates sub-brand, targeting the American 15- to 21-year-old female demographic segment. In addition to intimates such as a wide variety of bras
Brassiere
A brassiere is an undergarment that covers, supports, and elevates the breasts. Since the late 19th century, it has replaced the corset as the most widely accepted method for supporting breasts....

 and other undergarment
Undergarment
Undergarments or underwear are clothes worn under other clothes, often next to the skin. They keep outer garments from being soiled by bodily secretions and discharges, shape the body, and provide support for parts of it. In cold weather, long underwear is sometimes worn to provide additional...

s, the aerie line also sells dormwear, active apparel, loungewear, and sleepwear
Pajamas
Pajamas, also spelled pyjamas , can refer to several related types of clothing. The original paijama are loose, lightweight trousers fitted with drawstring waistbands and worn in South and West Asia by both sexes...

. 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-line through the American Eagle Web site, and in stand-alone aerie retail stores. The first stand-alone aerie store opened in August 2006 in Greenville, S.C. and was followed by two more test stores later that year. As of December 2010, there are currently 147 stand-alone aerie stores in the United States and in Canada.

Martin + Osa


The company's second stand-alone lifestyle concept, launched in the fall of 2006 and targeted men and women from 28 to 40 years of age. It featured cashmere sweaters
Cashmere wool
Cashmere wool, usually simply known as cashmere, is a fiber obtained from Cashmere and other types of goats. The word cashmere derives from an old spelling of Kashmir. Cashmere is fine in texture, and strong, light, and soft. Garments made from it provide excellent...

 and casual clothing for an older target audience. They also sold products by Fred Perry, Ray-Ban, Adidas
Adidas
Adidas AG is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adidas golf company , and Rockport...

, Onitsuka Tiger, and HOBO International. In March 2010, management announced that all 28 Martin + Osa stores be closed, after a failed attempt at success in retail markets, causing AEO, Inc. to lose up to $44 million.

77kids


In October 2008, American Eagle released and launched 77kids, a line of clothing aimed at children from 0 months–14 years of age. Initially, an on-line concept only, AEO opened its first 77kids store on July 15, 2010 in the The Mall at Robinson
The Mall at Robinson
The Mall at Robinson is a two-level, enclosed super-regional shopping mall located just off the Parkway West and PA Route 60 in Robinson Township, Allegheny County, Pennsylvania, five minutes east of the Pittsburgh International Airport and 15 minutes from downtown Pittsburgh...

 in Pittsburgh, PA, and eight others followed that year including:
  • Ross Park Mall
    Ross Park Mall
    Ross Park Mall is an upscale shopping mall located in Ross Township, Pennsylvania, north of Pittsburgh. The mall houses nearly 160 retailers including anchor stores JCPenney, Macy's, Nordstrom and Sears...

    , Pittsburgh, PA
  • Danbury Fair
    Danbury Fair
    The Danbury Fair was a yearly exhibition in Danbury, Connecticut. It was begun in 1821 as an agricultural fair, but did not have a regular schedule until 1869 when hat manufacturers Rundle and White helped form the Danbury Farmers and Manufacturers Society...

    , Danbury, CT
  • The Mall of America, Bloomington, MN
  • Cherry Hill Mall, Cherry Hill, NJ
  • Carousel Center
    Carousel Center
    Carousel Center is a , seven-story super-regional shopping and entertainment complex on the shore of Onondaga Lake in Syracuse, New York. It has eight anchor store slots - currently filled with Best Buy, Bon Ton, Forever 21 , JCPenney, Macy's, Lord & Taylor, and Sports Authority...

    , Syracuse, NY
  • Crabtree Valley Mall
    Crabtree Valley Mall
    Crabtree Valley Mall is a regional mall located in Raleigh, North Carolina. At , it is the largest enclosed mall in the Triangle. Crabtree Valley contains over 220 stores and is anchored by Belk, Sears, and Macy's. Higher-end restaurants located in the mall include The Cheesecake Factory, P. F...

    , Raleigh, NC
  • Walden Galleria
    Walden Galleria
    Walden Galleria is an enclosed shopping mall located in the town of Cheektowaga, New York. Walden Galleria comprises more than of retail space, with 250 stores on two levels, including a food court and a movie theater. Anchor stores include Best Buy, Dick's Sporting Goods, DSW Shoe Warehouse,...

    , Buffalo, NY
  • Westfarms Mall
    Westfarms Mall
    WestFarms Mall, sometimes referred to as WestFarms, is a mall located seven miles southwest of Hartford, Connecticut. The mall developer is The Taubman Company. It is the third largest indoor mall in the state....

    , Farmington, CT
  • Woodfield Mall
    Woodfield Mall
    Woodfield Mall is an enclosed super-regional shopping mall located in the northwest Chicago suburb of Schaumburg, Illinois, United States, at the intersection of Golf Road and Illinois Route 53....

    , Schaumburg, IL
  • Westfield Mall, Trumbull, CT
  • Natick Mall, Natick, Massachusetts

The company plans to continue expansion in Fiscal Year 2011.



International Expansion


American Eagle first opened an International Store in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 in 2000. In 2003, AE opened the first store outside North America Store in San Juan
San Juan, Puerto Rico
San Juan , officially Municipio de la Ciudad Capital San Juan Bautista , is the capital and most populous municipality in Puerto Rico, an unincorporated territory of the United States. As of the 2010 census, it had a population of 395,326 making it the 46th-largest city under the jurisdiction of...

, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...

. In 2010 AEO crossed the Atlantic Ocean to open stores in Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

, Riyadh
Riyadh
Riyadh is the capital and largest city of Saudi Arabia. It is also the capital of Riyadh Province, and belongs to the historical regions of Najd and Al-Yamama. It is situated in the center of the Arabian Peninsula on a large plateau, and is home to 5,254,560 people, and the urban center of a...

 and Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

. A store in Kaslik
Kaslik
Kaslik is a Lebanese Maronite village located in the Keserwan District of Mount Lebanon....

 near Beirut
Beirut
Beirut is the capital and largest city of Lebanon, with a population ranging from 1 million to more than 2 million . Located on a peninsula at the midpoint of Lebanon's Mediterranean coastline, it serves as the country's largest and main seaport, and also forms the Beirut Metropolitan...

, Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...

 was opened on October 15, 2011. A store in Cairo
Cairo
Cairo , is the capital of Egypt and the largest city in the Arab world and Africa, and the 16th largest metropolitan area in the world. Nicknamed "The City of a Thousand Minarets" for its preponderance of Islamic architecture, Cairo has long been a centre of the region's political and cultural life...

, Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...

 is set to open in late 2011. The first store in Tel Aviv
Tel Aviv
Tel Aviv , officially Tel Aviv-Yafo , is the second most populous city in Israel, with a population of 404,400 on a land area of . The city is located on the Israeli Mediterranean coastline in west-central Israel. It is the largest and most populous city in the metropolitan area of Gush Dan, with...

, Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

 is expected to open in 2012, after the Israeli-based clothing retailer FOX
Fox (clothing)
Fox is an Israel-based fashion chain specializing in women's, men's, children's, and babies' fashions. Respectively, those brands are FOX, FOX MEN, FOX KIDS, and FOX BABY....

, signed a contract with AEO. Currently, there are plans to open stores in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

, Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

, Hong-Kong and Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...

.

Strike


In 2007, textile
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...

 and apparel workers union UNITE HERE
UNITE HERE
UNITE HERE is a labor union in the United States and Canada with more than 265,000 active members The union's members work predominantly in the hotel, food service, laundry, warehouse, and casino gaming industries...

launched the "American Vulture" back-to-school boycott of American Eagle 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, CEO James O'Donnell clarified the American Eagle's relationship with NLS and its effect on business. He explained,

Abercrombie & Fitch lawsuits


Since 1999, Abercrombie & Fitch
Abercrombie & Fitch
Abercrombie & Fitch is an American retailer that focuses on casual wear for consumers aged 18 to 22. It has over 300 locations in the United States, and is expanding internationally....

 has sued American Eagle Outfitters at least three times for continually copying its designs and its advertisement
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...

s. On all occasions, American Eagle prevailed in court under the statement that A&F cannot stop American Eagle 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. The merchandise offered by American Eagle is considered to be "retro/vintage" cost-efficient clothing, whereas Abercrombie & Fitch merchandise has become an internationally known "near-luxury" line of clothing with "preppy", high-grade & high-priced fashions, on the same level with that of companies such as the Polo Ralph Lauren
Polo Ralph Lauren
Ralph Lauren Corporation is a luxury clothing and goods company of the American fashion designer Ralph Lauren. Ralph Lauren specializes in high-end casual/semi-formal wear for men and women, as well as accessories, fragrances, home and housewares...

company. Judges have generally ruled that giving Abercrombie exclusive rights to market its clothing in a certain way "would be anti-competitive."

External links