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 half their ownership interests in 1980 to the Schottenstein family and the remainder in 1991.[2] American Eagle Outfitters is the parent company of Aerie, Unsubscribed, and Todd Snyder.[3]
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.[4] 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.[5]
Development
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.
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 over the next year.
Corporate and 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
In June 2009, the company signed the franchise 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.
Stores
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
aerie
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
International expansion
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 TAJ Lifestyle Center. 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]
Controversies
Strike
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 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 allegedly copying its designs and its
International stores
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]
See also
External links
References
- American Eagle Outfitters, Inc. Form 10-K for 2023 Annual Report U.S. Securities and Exchange Commission, retrieved April 28, 2024^
- History of American Eagle Outfitters, Inc. – FundingUniverse. Fundinguniverse.com. Retrieved on July 23, 2013.^
- American Eagle Outfitters, Form 10-K, Annual Report, Filing Date Mar 15, 2012