About AMERICAN EAGLE OUTFITTERS, INC.

Once a purveyor of outdoor gear, American Eagle Outfitters now feathers its nest with jeans and polos. The mall-based retailer sells denim and other casual apparel and accessories (top categories include jeans, t-shirts, bras, and panties) under its American Eagle Outfitters and Aerie brands, aimed at young men and women ages 15-25. The chain operates more than 1,220 stores across the US, Canada, Hong Kong, China, Mexico, and the UK. It also has stores in 23 other countries operated under license. Direct sales come from the company's websites.

Operations

The American Eagle Outfitters (AEO) and Aerie brands are mostly sold in separate store locations given their contrasting branding. AEO sells clothing for young men and women through around 940 stores and online, while Aerie sells underwear and intimates for young women through more than 100 stand-alone and 80-plus side-by-side stores, as well as online. American Eagle also operates four Tailgate Clothing Co. retail stores.

About 55% of American Eagle's revenue comes from AEO women's apparel and accessories and some 35% comes from men's. The company's Aerie products bring in the remainder of total sales at around 10%.

The majority of American Eagle's stores are company owned, but 175 are licensed store locations.

Geographic Reach

Products are sold online to 81 countries worldwide. American Eagle rings up more than 85% of its sales in the US. Canada, where the chain has 100 stores in nine provinces, is the company's second largest market. The chain also has around 150 international stores in more than 20 countries, including 25 stores in Mexico, six in Hong Kong, 10 in China, and three in the UK.

Sales and Marketing

The company's merchandise is typically shipped from vendors to US distribution centers in Pennsylvania and Kansas or its Canadian distribution center in Ontario. It has third-party distribution centers in Mexico City, Shanghai, the Netherlands, and Hong Kong.

Advertising expenditure mostly goes towards direct mail, in-store photographs, and other promotional costs that come with marketing campaigns.

Financial Performance

In fiscal 2016, revenue grew 2% to $3.6 billion with sluggish 1% growth in the American Eagle Outfitters (AEO) brand complemented by 23% growth in the smaller Aerie brand. AEO men's segment decreased in the mid-single digits, while women's increased by a similar amount. Higher average transaction size was partially offset by lower total transaction numbers.

Net income fell 3% to $212.4 million due to an impairment and restructuring charges of $21.2 million. Cash provided by operating activities climbed 7% to $365.6 million due mostly to higher sales.

Strategy

American Eagle's growth strategy includes expanding its store fronts both domestically and internationally. In 2016, the chain's store opening program eased off (it opened a net 3 stores in the year), but it plans to open 15-20 American Eagle Outfitters stores and 15 Aerie stores in 2017, as well as convert 30-35 Aerie side-by-side format stores. Meanwhile, it plans on closing 15-20 American Eagle Outfitters stores in the same period.

Mergers and Acquisitions

In 2015, the American Eagle acquired Iowa based Tailgate Clothing Company, which owns and operates Tailgate, a vintage, sports-inspired apparel brand with a college town store concept, and Todd Snyder New York, a premium menswear brand for $13.5 million. The Tailgate store concept is an ideal outlet to integrate AE jeans and apparel.

Company Background

With the exception of aerie, American Eagle Outfitters hasn't had much luck launching new brands. Its MARTIN + OSA sportswear concept for older men and women (launched in 2006) was shutdown four years later.

77kids, introduced in 2008 as an online-only brand and later expanded to 20 retail locations, was sold in mid-2013 after disappointing results. Terms of the 77kids sale to Ezrani 2 Corp., which is owned by Ezra Dabah, former CEO of another kids' clothing chain The Children's Place, were not disclosed. As a result of the sale, American Eagle recorded an after-tax loss of about $35 million, which is at the low end of a previously announced range of $35 million to $50 million.

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AMERICAN EAGLE OUTFITTERS, INC.

77 Hot Metal St
Pittsburgh, PA 15203-2381
Phone: 1 (412) 432-3300

Stats

  • Employer Type: Public
  • Stock Symbol: AEO
  • Stock Exchange: NYSE
  • Chairman and CEO: Jay L. Schottenstein
  • EVP and COO: Michael R. Rempell
  • Chairman and CEO: Jay L. Schottenstein
  • 2017 Employees: 38,700

Major Office Locations

  • Pittsburgh, PA

Other Locations

  • Anchorage, AK
  • Fairbanks, AK
  • Anniston, AL
  • Auburn, AL
  • Birmingham, AL
  • Decatur, AL
  • Dothan, AL
  • Florence, AL
  • Gadsden, AL
  • Hoover, AL
  • Huntsville, AL
  • Mobile, AL
  • Montgomery, AL
  • Spanish Fort, AL
  • Tuscaloosa, AL
  • Vestavia, AL
  • Fayetteville, AR
  • Fort Smith, AR
  • Hot Springs, AR
  • Little Rock, AR
  • North Little Rock, AR
  • Rogers, AR
  • Chandler, AZ
  • Gilbert, AZ
  • Glendale, AZ
  • Phoenix, AZ
  • Scottsdale, AZ
  • Tempe, AZ
  • Tucson, AZ
  • Yuma, AZ
  • Bakersfield, CA
  • Burbank, CA
  • Cabazon, CA
  • Calexico, CA
  • Camarillo, CA
  • Canoga Park, CA
  • Carlsbad, CA
  • Cerritos, CA
  • Chico, CA
  • Commerce, CA
  • Concord, CA
  • Culver City, CA
  • El Centro, CA
  • Emeryville, CA
  • Escondido, CA
  • Fresno, CA
  • Glendale, CA
  • Livermore, CA
  • Los Angeles, CA
  • Milpitas, CA
  • Modesto, CA
  • Montclair, CA
  • Napa, CA
  • National City, CA
  • Northridge, CA
  • Ontario, CA
  • Orange, CA
  • Palm Desert, CA
  • Pleasanton, CA
  • Rancho Cucamonga, CA
  • Redding, CA
  • Riverside, CA
  • Sacramento, CA
  • San Bernardino, CA
  • San Diego, CA
  • San Francisco, CA
  • San Mateo, CA
  • Santa Barbara, CA
  • Santa Clara, CA
  • Santa Clarita, CA
  • Santa Rosa, CA
  • Stockton, CA
  • Tejon Ranch, CA
  • Temecula, CA
  • Torrance, CA
  • Ventura, CA
  • Visalia, CA
  • Yuba City, CA
  • Aurora, CO
  • Broomfield, CO
  • Colorado Springs, CO
  • Denver, CO
  • Grand Junction, CO
  • Lakewood, CO
  • Littleton, CO
  • Loveland, CO
  • Silverthorne, CO
  • Canton, CT
  • Danbury, CT
  • Farmington, CT
  • Manchester, CT
  • Meriden, CT
  • Milford, CT
  • Trumbull, CT
  • Waterbury, CT
  • Waterford, CT
  • Dover, DE
  • Newark, DE
  • Rehoboth Beach, DE
  • Wilmington, DE
  • Altamonte Springs, FL
  • Boca Raton, FL
  • Boynton Beach, FL
  • Brandon, FL
  • Clearwater, FL
  • Coral Springs, FL
  • Daytona Beach, FL
  • Ellenton, FL
  • Estero, FL
  • Fort Lauderdale, FL
  • Fort Myers, FL
  • Gainesville, FL
  • Jacksonville, FL
  • Jensen Beach, FL
  • Kissimmee, FL
  • Lakeland, FL
  • Melbourne, FL
  • Miami, FL
  • Naples, FL
  • Ocala, FL
  • Orange Park, FL
  • Orlando, FL
  • Panama City, FL
  • Panama City Beach, FL
  • Pembroke Pines, FL
  • Pensacola, FL
  • Port Charlotte, FL
  • Port Richey, FL
  • Saint Petersburg, FL
  • Sanford, FL
  • Tallahassee, FL
  • Tampa, FL
  • Wesley Chapel, FL
  • West Palm Beach, FL
  • Albany, GA
  • Alpharetta, GA
  • Athens, GA
  • Atlanta, GA
  • Augusta, GA
  • Buford, GA
  • Centerville, GA
  • Columbus, GA
  • Commerce, GA
  • Dalton, GA
  • Douglasville, GA
  • Kennesaw, GA
  • Lithonia, GA
  • Macon, GA
  • Marietta, GA
  • Morrow, GA
  • Newnan, GA
  • Peachtree City, GA
  • Rome, GA
  • Savannah, GA
  • Valdosta, GA
  • Aiea, HI
  • Hilo, HI
  • Honolulu, HI
  • Kahului, HI
  • Ames, IA
  • Cedar Falls, IA
  • Cedar Rapids, IA
  • Coralville, IA
  • Davenport, IA
  • Des Moines, IA
  • Dubuque, IA
  • Sioux City, IA
  • West Des Moines, IA
  • Boise, ID
  • Idaho Falls, ID
  • Algonquin, IL
  • Aurora, IL
  • Bloomington, IL
  • Bolingbrook, IL
  • Champaign, IL
  • Chicago, IL
  • Chicago Ridge, IL
  • Deer Park, IL
  • Fairview Heights, IL
  • Forsyth, IL
  • Geneva, IL
  • Gurnee, IL
  • Joliet, IL
  • Lombard, IL
  • Moline, IL
  • Oak Brook, IL
  • Orland Park, IL
  • Peoria, IL
  • Rockford, IL
  • Springfield, IL
  • Vernon Hills, IL
  • Bloomington, IN
  • Carmel, IN
  • Clarksville, IN
  • Edinburgh, IN
  • Evansville, IN
  • Fort Wayne, IN
  • Greenwood, IN
  • Indianapolis, IN
  • Kokomo, IN
  • Lafayette, IN
  • Merrillville, IN
  • Mishawaka, IN
  • Muncie, IN
  • Noblesville, IN
  • Plainfield, IN
  • Richmond, IN
  • Terre Haute, IN
  • Kansas City, KS
  • Manhattan, KS
  • Ottawa, KS
  • Shawnee Mission, KS
  • Topeka, KS
  • Wichita, KS
  • Ashland, KY
  • Bowling Green, KY
  • Elizabethtown, KY
  • Lexington, KY
  • Louisville, KY
  • Owensboro, KY
  • Paducah, KY
  • Alexandria, LA
  • Baton Rouge, LA
  • Bossier City, LA
  • Gonzales, LA
  • Houma, LA
  • Lafayette, LA
  • Lake Charles, LA
  • Mandeville, LA
  • Metairie, LA
  • Monroe, LA
  • Shreveport, LA
  • Auburn, MA
  • Boston, MA
  • Braintree, MA
  • Burlington, MA
  • Cambridge, MA
  • Hadley, MA
  • Hingham, MA
  • Holyoke, MA
  • Hyannis, MA
  • Kingston, MA
  • Lanesboro, MA
  • Lee, MA
  • Leominster, MA
  • Lynnfield, MA
  • Marlborough, MA
  • Millbury, MA
  • Natick, MA
  • North Attleboro, MA
  • North Dartmouth, MA
  • Peabody, MA
  • Saugus, MA
  • Annapolis, MD
  • Baltimore, MD
  • Bel Air, MD
  • Bethesda, MD
  • Bowie, MD
  • Columbia, MD
  • Cumberland, MD
  • Frederick, MD
  • Glen Burnie, MD
  • Hagerstown, MD
  • Hanover, MD
  • Ocean City, MD
  • Oxon Hill, MD
  • Salisbury, MD
  • Waldorf, MD
  • Wheaton, MD
  • Augusta, ME
  • Bangor, ME
  • Ann Arbor, MI
  • Auburn Hills, MI
  • Birch Run, MI
  • Brighton, MI
  • Byron Center, MI
  • Farmington Hills, MI
  • Flint, MI
  • Grand Rapids, MI
  • Grandville, MI
  • Jackson, MI
  • Lansing, MI
  • Midland, MI
  • Muskegon, MI
  • Novi, MI
  • Okemos, MI
  • Portage, MI
  • Roseville, MI
  • Saginaw, MI
  • Sterling Heights, MI
  • Taylor, MI
  • Traverse City, MI
  • Westland, MI
  • Albertville, MN
  • Bloomington, MN
  • Duluth, MN
  • Eagan, MN
  • Eden Prairie, MN
  • Mankato, MN
  • Maple Grove, MN
  • Minneapolis, MN
  • Minnetonka, MN
  • Rochester, MN
  • Saint Cloud, MN
  • Saint Paul, MN
  • Woodbury, MN
  • Branson, MO
  • Cape Girardeau, MO
  • Chesterfield, MO
  • Columbia, MO
  • Hazelwood, MO
  • Independence, MO
  • Joplin, MO
  • Kansas City, MO
  • Saint Joseph, MO
  • Saint Louis, MO
  • Saint Peters, MO
  • Springfield, MO
  • Biloxi, MS
  • Hattiesburg, MS
  • Meridian, MS
  • Ridgeland, MS
  • Southaven, MS
  • Tupelo, MS
  • Billings, MT
  • Missoula, MT
  • Asheboro, NC
  • Asheville, NC
  • Charlotte, NC
  • Concord, NC
  • Durham, NC
  • Fayetteville, NC
  • Gastonia, NC
  • Goldsboro, NC
  • Greensboro, NC
  • Greenville, NC
  • Huntersville, NC
  • Jacksonville, NC
  • Mebane, NC
  • Pineville, NC
  • Raleigh, NC
  • Rocky Mount, NC
  • Wilmington, NC
  • Winston Salem, NC
  • Bismarck, ND
  • Fargo, ND
  • Grand Forks, ND
  • Minot, ND
  • Grand Island, NE
  • Lincoln, NE
  • Omaha, NE
  • Manchester, NH
  • Merrimack, NH
  • Nashua, NH
  • Newington, NH
  • Salem, NH
  • Atlantic City, NJ
  • Bridgewater, NJ
  • Cherry Hill, NJ
  • East Brunswick, NJ
  • Eatontown, NJ
  • Edison, NJ
  • Elizabeth, NJ
  • Flemington, NJ
  • Freehold, NJ
  • Jersey City, NJ
  • Lawrenceville, NJ
  • Livingston, NJ
  • Marlton, NJ
  • Mays Landing, NJ
  • Moorestown, NJ
  • Paramus, NJ
  • Rockaway, NJ
  • Toms River, NJ
  • Vineland, NJ
  • Wayne, NJ
  • Woodbridge, NJ
  • Woodbury, NJ
  • Albuquerque, NM
  • Las Cruces, NM
  • Henderson, NV
  • Reno, NV
  • Albany, NY
  • Bay Shore, NY
  • Bayside, NY
  • Blasdell, NY
  • Bronx, NY
  • Brooklyn, NY
  • Buffalo, NY
  • Deer Park, NY
  • Elmhurst, NY
  • Garden City, NY
  • Hicksville, NY
  • Horseheads, NY
  • Ithaca, NY
  • Lake Grove, NY
  • Lakewood, NY
  • Massapequa, NY
  • Middletown, NY
  • New York, NY
  • Niagara Falls, NY
  • Oceanside, NY
  • Plattsburgh, NY
  • Poughkeepsie, NY
  • Queensbury, NY
  • Rochester, NY
  • Saratoga Springs, NY
  • Scarsdale, NY
  • Staten Island, NY
  • Syracuse, NY
  • Victor, NY
  • West Nyack, NY
  • Akron, OH
  • Aurora, OH
  • Beavercreek, OH
  • Canton, OH
  • Cincinnati, OH
  • Cleveland, OH
  • Columbus, OH
  • Dayton, OH
  • Dublin, OH
  • Fairlawn, OH
  • Findlay, OH
  • Jeffersonville, OH
  • Lancaster, OH
  • Liberty Township, OH
  • Mansfield, OH
  • Maumee, OH
  • Mentor, OH
  • Newark, OH
  • Niles, OH
  • North Olmsted, OH
  • North Royalton, OH
  • Saint Clairsville, OH
  • Sandusky, OH
  • Strongsville, OH
  • Westlake, OH
  • Youngstown, OH
  • Zanesville, OH
  • Lawton, OK
  • Muskogee, OK
  • Norman, OK
  • Oklahoma City, OK
  • Stillwater, OK
  • Tulsa, OK
  • Bend, OR
  • Eugene, OR
  • Hillsboro, OR
  • Lincoln City, OR
  • Medford, OR
  • Portland, OR
  • Salem, OR
  • Tigard, OR
  • Woodburn, OR
  • Bensalem, PA
  • Butler, PA
  • Camp Hill, PA
  • Center Valley, PA
  • Chambersburg, PA
  • Cranberry Township, PA
  • Easton, PA
  • Erie, PA
  • Exton, PA
  • Hershey, PA
  • Indiana, PA
  • King Of Prussia, PA
  • Lancaster, PA
  • Langhorne, PA
  • Leetsdale, PA
  • Mercer, PA
  • Monaca, PA
  • Monroeville, PA
  • Moosic, PA
  • Muncy, PA
  • North Wales, PA
  • Reading, PA
  • Scranton, PA
  • Selinsgrove, PA
  • Springfield, PA
  • Tannersville, PA
  • Tarentum, PA
  • Uniontown, PA
  • Warrendale, PA
  • Washington, PA
  • Whitehall, PA
  • Wilkes Barre, PA
  • Willow Grove, PA
  • York, PA
  • Providence, RI
  • Smithfield, RI
  • Warwick, RI
  • Anderson, SC
  • Columbia, SC
  • Florence, SC
  • Gaffney, SC
  • Myrtle Beach, SC
  • North Charleston, SC
  • Rock Hill, SC
  • Spartanburg, SC
  • Rapid City, SD
  • Sioux Falls, SD
  • Chattanooga, TN
  • Clarksville, TN
  • Cleveland, TN
  • Franklin, TN
  • Jackson, TN
  • Johnson City, TN
  • Kingsport, TN
  • Knoxville, TN
  • Lebanon, TN
  • Maryville, TN
  • Memphis, TN
  • Morristown, TN
  • Nashville, TN
  • Pigeon Forge, TN
  • Sevierville, TN
  • Abilene, TX
  • Allen, TX
  • Amarillo, TX
  • Arlington, TX
  • Austin, TX
  • Beaumont, TX
  • Canutillo, TX
  • Cedar Park, TX
  • College Station, TX
  • Corpus Christi, TX
  • Dallas, TX
  • Denton, TX
  • El Paso, TX
  • Fort Worth, TX
  • Friendswood, TX
  • Frisco, TX
  • Garland, TX
  • Grapevine, TX
  • Houston, TX
  • Humble, TX
  • Hurst, TX
  • Irving, TX
  • Katy, TX
  • Killeen, TX
  • Lake Jackson, TX
  • Laredo, TX
  • Longview, TX
  • Lubbock, TX
  • Lufkin, TX
  • Mcallen, TX
  • Mesquite, TX
  • Midland, TX
  • Plano, TX
  • San Antonio, TX
  • San Marcos, TX
  • Sherman, TX
  • Southlake, TX
  • Spring, TX
  • Sugar Land, TX
  • Texas City, TX
  • Tyler, TX
  • Victoria, TX
  • Waco, TX
  • Layton, UT
  • Orem, UT
  • Park City, UT
  • Salt Lake City, UT
  • Sandy, UT
  • Alexandria, VA
  • Arlington, VA
  • Colonial Heights, VA
  • Danville, VA
  • Dulles, VA
  • Fairfax, VA
  • Fredericksburg, VA
  • Glen Allen, VA
  • Harrisonburg, VA
  • Leesburg, VA
  • Lynchburg, VA
  • Manassas, VA
  • Mc Lean, VA
  • Newport News, VA
  • Norfolk, VA
  • North Chesterfield, VA
  • Richmond, VA
  • Roanoke, VA
  • Virginia Beach, VA
  • Winchester, VA
  • Woodbridge, VA
  • South Burlington, VT
  • Bellevue, WA
  • Bellingham, WA
  • Burlington, WA
  • Kennewick, WA
  • Lynnwood, WA
  • Olympia, WA
  • Puyallup, WA
  • Redmond, WA
  • Seattle, WA
  • Silverdale, WA
  • Spokane, WA
  • Tacoma, WA
  • Tukwila, WA
  • Union Gap, WA
  • Vancouver, WA
  • Brookfield, WI
  • Eau Claire, WI
  • Fond Du Lac, WI
  • Green Bay, WI
  • Greendale, WI
  • Janesville, WI
  • La Crosse, WI
  • Madison, WI
  • Milwaukee, WI
  • Racine, WI
  • Wausau, WI
  • Barboursville, WV
  • Bluefield, WV
  • Bridgeport, WV
  • Charleston, WV
  • Morgantown, WV
  • Mount Hope, WV
  • Parkersburg, WV
  • Abbotsford, Canada
  • Anjou, Canada
  • Barrie, Canada
  • Belleville, Canada
  • Brampton, Canada
  • Brossard, Canada
  • Burlington, Canada
  • Burnaby, Canada
  • Calgary, Canada
  • Cambridge, Canada
  • Coquitlam, Canada
  • Côte Saint-Luc, Canada
  • Dartmouth, Canada
  • Dieppe, Canada
  • Edmonton, Canada
  • Fredericton, Canada
  • Guelph, Canada
  • Halifax, Canada
  • Halton Hills, Canada
  • Hamilton, Canada
  • Kelowna, Canada
  • Kingston, Canada
  • Kitchener, Canada
  • Langley, Canada
  • Markham, Canada
  • Mississauga, Canada
  • Montréal, Canada
  • Newmarket, Canada
  • North Bay, Canada
  • North York, Canada
  • Oakville, Canada
  • Orleans, Canada
  • Oshawa, Canada
  • Ottawa, Canada
  • Peterborough, Canada
  • Pickering, Canada
  • Red Deer, Canada
  • Regina, Canada
  • Richmond, Canada
  • Richmond Hill, Canada
  • Saint John, Canada
  • Saint-Bruno, Canada
  • Saint-Lambert, Canada
  • Sarnia, Canada
  • Saskatoon, Canada
  • Scarborough, Canada
  • St Catharines, Canada
  • St. John'S, Canada
  • Sudbury, Canada
  • Surrey, Canada
  • Thornhill, Canada
  • Thunder Bay, Canada
  • Toronto, Canada
  • Vancouver, Canada
  • Vaughan, Canada
  • Victoria, Canada
  • Waterloo, Canada
  • West Vancouver, Canada
  • Windsor, Canada
  • Winnipeg, Canada
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