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American Eagle Outfitters, Inc.
Type Public (NYSEAEO)
Founded 1977
Headquarters Pittsburgh, Pennsylvania, United States
Area served United States
Canada
Key people Jay L. Schottenstein (Chairman)
John V. O'Donnell (CEO)
Industry Retail
Products Apparel, accessories
Revenue US$2.99 Billion (FY 2009)[1]
Operating income US$302 Million (FY 2009)[1]
Net income US$179 Million (FY 2009)[1]
Total assets US$1.96 Billion (FY 2009) [2]
Total equity US$1.41 Billion (FY 2009)[2]
Employees 12,000
Parent Retail Ventures
Website www.ae.com

American Eagle Outfitters (NYSEAEO) is an American clothing and accessories retailer based in Pittsburgh, Pennsylvania. 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.[3]

American Eagle (also stylized as Am. Eagle, A. Eagle, A.E.O, Amer. Eagle, A.E., æ, and A.E. Outfitters) targets teens and young adults.[4] Some of the best selling products of American Eagle Outfitters are Low-rise jeans, Polo Shirts, Graphic T-shirts (with the AE logo and year established), and swimwear.[citation needed]

Contents

Development

When the Silvermans first opened an American Eagle Outfitters store in 1977, they were looking to diversify their menswear business. 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 this time, there were 137 American Eagle Outfitters stores including 37 in the United 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 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 clothes. AE opened the first Canadian store in 2001.

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. 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 15 and 25.[citation needed] The strategy worked[citation needed], and over the next five years, revenues quintupled to $1 billion by 2000.[3] 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.[5]

Store

The store environment is bright when compared to its competitors Abercrombie & Fitch or Hollister Co. Items are placed on white wooden shelving, tables, or clothes racks. American Eagle's catch phrase is "Live Your Life."

Internet

In 1999 the company was able to buy its initials, the two letter domain name AE.com. Only 59 famous Brands worldwide are in the VB.com Internet Hall of Fame owning their 2 letter acronym as an Internet Address.[6]. The AE Online store ships internationally.

Headquarters

In mid-2007, American Eagle Outfitters moved its headquarters from Warrendale, PA to a new location in Pittsburgh, PA. The cost of the building and adjacent property was approximately $21 million (excluding interior finishing and additional construction costs). The address of the building is 77 Hot Metal Street (The number symbolizing the first store opening in 1977).[7]

Other brands

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.[citation needed]

The company's second stand-alone lifestyle concept, Martin + Osa, launched in the fall of 2006 and targets men and women from 28 to 40 years of age. It features cashmere sweaters and casual clothing for an older target audience. They also sell products by Fred Perry, Ray-Ban, Adidas, Onitsuka Tiger, and HOBO International. [8]

Advertisements

Bluenotes

In 1999, the company acquired Canada-based clothing-chain Bluenotes, which has approximately 100 stores averaging 3,300 square feet (310 m2). The concept targeted a slightly younger demographic, ages 12–25, and was positioned as a denim-driven urban/suburban lifestyle brand. Due largely to poor performance, the Bluenotes business was sold to YM, Inc. in 2001. [9]

The aerie bird logo

aerie

In February 2006, American Eagle launched the aerie intimates sub-brand, targeting the American 13-25 year-old female demographic segment. In addition to intimates such as a wide variety of bras and underwear, it also sells dormwear, active apparel, loungewear, and sleepwear. The aerie brand is sold in American Eagle Outfitters stores, online through the AE website, and in aerie retail stores. The first standalone aerie store opened in August 2006 in Greenville, South Carolina[10] and was followed by two more test stores later that year; there are currently 131 standalone aerie stores in the U.S. and Canada with plans to open 17 more in 2009.[11][12]

77 kids

In October 2008, American Eagle released and launched 77 kids, a line of clothing aimed at children from 2–12 years-of-age. Online shopping is currently the only way to purchase 77 kids merchandise, but there are plans to open retail stores in 2010. [13]

Franchisee Agreement

In June 2009, the company signed the franchisee agreement with M. H. Alshaya, one of the leading retailers of the Middle East. The agreement will see the introduction of the first stores outside the North American market, with the first two opening in Dubai and Kuwait on March 16 and March 25, respectively.

Controversies

Strike

In 2007, textile and apparel workers union UNITE HERE launched the "American Vulture" back-to-school boycott of American Eagle [14] 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[15], 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

Since 1999, Abercrombie & Fitch has sued American Eagle Outfitters at least three times for consistently copying its designs and advertisements. On all occasions AEO prevailed under the statement that A&F can not stop AEO from coming out with similar designs, as they cannot be copyrighted. Nevertheless, AEO clothing has since then become less like A&F apparel. American Eagle offerings are considered retro cost-efficient clothing while A&F continues with preppy high-grade/cost fashions.[16] Judges have generally ruled that giving Abercrombie exclusive rights to market its clothing in a certain way "would be anti-competitive." [17]

References

  1. ^ a b c American Eagle Outfitters (AEO) annual SEC income statement filing via Wikinvest
  2. ^ a b American Eagle Outfitters (AEO) SEC balance sheet filing via Wikinvest
  3. ^ a b http://www.fundinguniverse.com/company-histories/American-Eagle-Outfitters-Inc-Company-History.html
  4. ^ "American Eagle Outfitters, Inc". Hoovers. 17231. 
  5. ^ http://phx.corporate-ir.net/phoenix.zhtml?c=81256&p=irol-homeprofile
  6. ^ VB.com - Large Companies that own a Two Letter Domain
  7. ^ http://phx.corporate-ir.net/phoenix.zhtml?c=81256&p=irol-newsArticle&ID=771168&highlight=
  8. ^ "American Eagle to open Martin + OSA store in Dallas", Dallas Business Journal, 2006-01-03, http://www.bizjournals.com/dallas/stories/2006/02/27/daily28.html 
  9. ^ Yeomans, Micheal (2004-11-24). "American Eagle Outfitters selling Bluenotes". Tribune. http://www.pittsburghlive.com/x/pittsburghtrib/s_276217.html. Retrieved 2008-11-28. 
  10. ^ PRNewswire (2006-08-17). "American Eagle Outfitters Introduces New Line of Dormwear and Intimates". Press release. http://ae.online-pressroom.com/releases/index.cfm?view=896799&category=2&year=2006. Retrieved 2009-03-10. 
  11. ^ American Eagle Outfitters co.. "117 aerie stores". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=81256&p=irol-homeprofile. Retrieved 2009-03-10. 
  12. ^ Pittsburgh Tribune-Review (2009-01-16). "American Eagle shifts former co-CEO to branding position". Press release. http://pittsburghlive.com/x/tribunereview/news/mostread/s_607368.html. Retrieved 2009-03-10. 
  13. ^ BusinessWire (2008-10-23). "77kids by american eagle Launches E-Commerce Web Site Offering "Kid Cool" Clothing and Accessories". Press release. http://www.pr-inside.com/kids-by-american-eagle-launches-e-commerce-r877001.htm. Retrieved 2008-11-28. 
  14. ^ http://www.americanvulture.org
  15. ^ American Eagle Outfitters F2Q07 (Qtr End 8/4/07) Earnings Call Transcript - Seeking Alpha
  16. ^ PR NewsWire (2002-02-18). "American Eagle Wins Abercrombie & Fitch Lawsuit in U.S. Court of Appeals". Press release. http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-18-2002/0001671098&EDATE=. Retrieved 2008-11-30. 
  17. ^ "Abercrombie's Lawsuit Against Rival Dismissed". Los Angeles Times. http://articles.latimes.com/1999/jul/16/business/fi-56515. Retrieved 2008-11-30. 

External links


Simple English

American Eagle is a clothing store in the United States and Canada. Most people who buy clothing from American Eagle are teenagers and young adults. The store opened in 1977 and the headquarters is in Pittsburgh, Pennsylvania.

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