American Eagle Outfitters

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American Eagle Outfitters (NYSE: AEO) 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.^[1]

American Eagle (also stylized as Am. Eagle, A.E.O, Amer. Eagle, A.E., æ and A.E. Outfitters) targets teens and young adults.^[2] 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]}

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 sixteen new stores and 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.

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 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.^[4]

The store environment is bright when compared with similar stores like Abercrombie & Fitch or Hollister. Items are placed on white wooden shelving, tables or clothes racks. American Eagle's catch phrase is "live your life." It is an all around American store with the newest^{[citation needed]} fashions for the seasons.

In mid 2007 American Eagle Outfitters moved their home office 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 buildings address is "77 Hot Metal Street" (The number symbolizing the first store opening in 1977).^[5]

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, 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. ^[6]

In 1999, the company acquired a Canada-based chain called 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. ^[7]

In February 2006 American Eagle launched the aerie intimates sub-brand, targeting the American 13 to 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^[8] and was followed by two more test stores later that year; there are currently 116 standalone aerie stores in the U.S. and Canada with plans to open 17 more in 2009.^{[9] [10]}

In January, 2008 American Eagle released and launched "77 kids," a line of clothing aimed at children from 2 to 12 years. Online shopping is currently the only way to purchase 77 kids merchandise, but there are plans to open retail stores in spring 2009. ^[11]

In June 2009, the company signed the Franchisee Agreement with M.H.Alshaya, one of the leading Retailers of the Middle East.

In 2007, textile and apparel workers union UNITE HERE launched the "American Vulture" back-to-school boycott of American Eagle ^[12] 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^[13], 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."

Since 1998, Abercrombie and Fitch has sued American Eagle Outfitters at least three times for copying its designs and advertisements. Each time, American Eagle has prevailed, with courts ruling that Abercrombie's designs cannot be copyrighted. Abercrombie does not have the same styling, American Eagle offers wider variety^{[citation needed]}, and the consumer ranges are slightly different. ^[14] Judges have generally ruled that giving Abercrombie exclusive rights to market its clothing in a certain way "would be anticompetitive." ^[15]

• Template:Franchisee Agreement with M.H.Alshaya

• Official website
• aerie
• 77kids