The American Eagle and Aerie parent company posted second-quarter gains and offered a more optimistic take on the second half.
American Eagle Outfitters Inc. offered some brick-and-mortar optimism headed into the back half — beating second-quarter estimates and raising its outlook for the year.
The specialty chain’s net income tallied $48.6 million for the second quarter, reversing losses of $42.5 million a year earlier. Earnings per share came in at 25 cents, which was 9 cents ahead of the 16 cents analysts forecast, according to FactSet.
The company’s efforts to trim costs are successfully boosting the bottom line, which has also been helped along by renewed consumer strength after a tougher first quarter.
Sales for the three months ended July 29 inched up modestly to $1.2 billion where a small decline was expected. Sales in stores rose 4 percent, gains that were offset by a 7 percent decline in the online business.
The flagship American Eagle brand saw revenues slip 1 percent to $767 million while Aerie rose 2 percent to $380 million.
In an interview with WWD, Mike Mathias, executive vice president and chief financial officer, attributed the digital declines to a normalization in the business after the COVID-19 rush.
Overall, the business accelerated in late June and early July, with back-to-school looks connecting with shoppers.
“There’s a demand change in general — just a change of consumer spending,” Mathias said. “We’ve seen some general improvement across others in the industry as well. It signals health in general.”
At American Eagle, women’s tops have been selling well, as has denim, a core strength of the chain. Aerie has also been picking up, with gains from the brand’s latest intimate offerings and also activewear and apparel.
For the full year, the retailer is now looking for revenues to increase in the low single digits, an improvement from flat to a low-single-digit decline previously forecast. Operating income is projected to range from $325 million to $350 million, up from the $250 million to $270 million seen before.
The outlook includes about $25 million in benefits from the company’s profit improvement initiatives, which Mathias said run the gambit from cost cuts to cost avoidance to other measures that touch most of the margin expense areas.
Inventory, which as of the close of the quarter was down 7 percent in dollars and 11 percent in units from a year ago, remains an area of focus — and one that will help the company navigate changes in consumer mood.
While the consumer is spending now, there are still some worries on the economic horizon as higher interest rates work their way through the economy and student loans start coming due again.
“We’re back to a normalized supply chain,” Mathias said. “We’re able to chase inventory, not front load. That sets us up to deal with these potential fluctuations or any of that volatility with the consumer and stay on the chase mode for inventory.”
Jay Schottenstein, AEO’s executive chairman and chief executive officer, said in a statement: “Looking to the second half, we are excited about future product arrivals, leveraging the positive response to early fall goods and delivering innovative customer connections. At the same time, we are keeping a sharp eye on the consumer environment and planning appropriately.”
American Eagle Outfitters Reports Second Quarter Results
AEO Inc. Reports Second Quarter Revenue and Operating Profit Above Expectations;Raises Annual Outlook Reflecting Strengthened Demand and Profit Initiatives
Record second quarter revenue of $1.2 billion, up slightly to last year
Operating profit of $65 million, up significantly, with growth across brands
Aerie posted all-time high second quarter revenue
American Eagle continued to see a sequential improvement in revenue trends
Realizing initial benefits from profit improvement initiatives
September 6, 2023
PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the second quarter ended July 29, 2023.
“I am pleased to report second quarter revenue and operating profit that exceeded our expectations. Demand picked up in June and July reflecting brand strength and on trend collections that are resonating well with customers, supported by exciting new marketing campaigns. It’s encouraging to see positive momentum continue into the third quarter, across brands and channels,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.
“Looking to the second half, we are excited about future product arrivals, leveraging the positive response to early fall goods and delivering innovative customer connections. At the same time, we are keeping a sharp eye on the consumer environment and planning appropriately. We are taking action to position the business for improved profit, with preliminary initiatives included in our increased 2023 outlook. As we continue to optimize our operations, I am confident in our ability to strengthen profitability longer-term.”
Second Quarter 2023 Results:
Total net revenue of $1.2 billion was up slightly to the second quarter of 2022. Store revenue was up 4%. Digital revenue declined 7%.
Aerie revenue of $380 million rose 2% versus second quarter 2022. Comp sales were flat. American Eagle revenue of $767 million declined 1% versus second quarter 2022. Comp sales declined 2%.
Gross profit of $453 million increased approximately 22% compared to $370 million in the second quarter of 2022 and reflected a gross margin rate of 37.7% compared to 30.9% last year. Merchandise margin expansion was driven by lower markdowns reflecting inventory control and lower transportation and product costs. Gross profit also benefited from early profit improvement initiatives as well as lower delivery, distribution and warehousing costs.
Selling, general and administrative expense of $332 million was up 8% to last year. Higher corporate compensation, incentives and other corporate expense were partially offset by cost efficiencies. SG&A increased 190 basis points as a rate to sales versus second quarter 2022.
Operating income was $65 million, reflecting a 5.4% margin.
Diluted EPS was $0.25. Average diluted shares outstanding were 196 million.
Inventory
Total ending inventory declined 7% to $637 million compared to $687 million last year, with units down 11%. The company continues to maintain inventory discipline.
Capital Expenditures
Capital expenditures totaled $46 million in the second quarter. For 2023, management continues to expect capital expenditures to approximate $150 to $175 million.
Profit Improvement Focus
This year, the company launched a comprehensive review of its cost structure, with near-term opportunities identified primarily within the gross margin, which represents approximately 70% of the company’s expense base. In the second quarter, initial benefits were realized, contributing to the year-over-year improvement in the gross margin. The increased outlook for fiscal 2023, incorporates additional back half benefits in addition to stronger business trends. The profit improvement project is ongoing with initiatives being launched across the company’s expense base, which are expected to yield results over the next 12 to 24 months.
Outlook
For the year, management expects revenue to be up low single digits to last year, compared to prior guidance for revenue in the range of flat to down low single digits. Operating income is expected to be in the range of $325 to $350 million, up from prior guidance of $250 to $270 million. This reflects better than expected business performance in the second quarter, in addition to strengthened demand and continued profit improvement in the back half of the year. The outlook includes approximately $25 million in benefits from the company’s profit improvement initiatives. With better business trends, the company is accruing incentives and expects SG&A to be up in the low double digits for the year.
For the third quarter, management’s outlook reflects revenue up low single digits with operating income in the range of $115 to $125 million. With incentive accruals skewed to the back half of the year, SG&A is expected to increase in the mid-teens. Depreciation is expected to be similar to the second quarter.
Conference Call and Supplemental Financial Information
Management will host a conference call and real time webcast today at 4:30 p.m. Eastern Time. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.aeo-inc.com to access the webcast and audio replay. Additionally, a financial results presentation is posted on the company’s website.
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About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, Hong Kong and Japan, and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 260 international locations operated by licensees in approximately 30 countries. In 2022, AEO released its first annual Building a Better World report, which outlines two decades of ESG achievements through the company’s Planet, People and Practices initiatives. For more information, please visitwww.aeo-inc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent our expectations or beliefs concerning future events, including third quarter and annual fiscal 2023 and annual fiscal 2024 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “potential,” and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 28, 2023 and in any other filings that we may make with the Securities and Exchange Commission in some cases have affected, and in the future could affect, the company’s financial performance and could cause actual results for fiscal 2023 and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the negative impacts of the COVID-19 pandemic and related operational disruptions; the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.
AEO Building a Better World Volunteer of the Month: Charlene, Material Handler
AEO associates share our commitment to doing better, being better and building a better world. We’re proud to spotlight our people who are making a real and lasting impact in their communities.
Meet Charlene, Material Handler at the Mississauga Distribution Center. As a volunteer with nonprofit animal rescue Paws & Tails, she spends time caring for cats and kittens in need. Charlene opens up about how volunteering has helped her to create a sense of belonging and she is encouraging others to give back as well.
Tell us about your favorite nonprofit and what it’s like to volunteer with them! Since 2022, I have volunteered with Paws & Tails – a nonprofit, no-kill shelter that is 100% run by volunteers. We take in surrendered cats and kittens and get them ready for their new FURever home. I work with the organization once a week and happily fill in for other volunteers as needed. I assist with buying and stocking cat and kitten food, snacks and toys. I also work with the kittens, socializing and getting them used to human interaction. My absolute favorite part is working with the senior cats that are so often looked over (because everyone wants a kitten). People might not realize that the older cats often have the most love to give!
I also enjoy working with the cats that have faced challenges before coming to the shelter. Not long after I started volunteering, I fostered a beautiful tabby named Millie who was surrendered to Paws & Tails. She was so incredibly frightened and didn’t understand why her family was gone. Neglected, abundantly overfed and severely overweight, she needed special care. With my time, love and attention, Millie lost weight and opened up to show a sweet, beautiful side that I completely fell head over heels in love with! She’s now in her furever home and I get weekly updates along with photos of her.
Why is giving back and volunteering important to you? Volunteering is important because it enables me to be involved in my community. I get to be a part of the growth of the animals from the time they arrive to placement in their new FURever homes. Volunteering makes such a PAWsitive impact, and if you are able to donate your time, your community will thank you and you’ll feel wonderful!
How do you think that being an active participant in your community helps to build a better world? Being an active participant in the community helps to create a real sense of belonging, unity and togetherness. Volunteering will always make a positive difference for ourselves and our communities, and to me building a better world means giving back to those who need it most.
What are some of the lessons you have learned through volunteering? The transformations I have seen for so many kittens and cats is amazing, and volunteers are helping to change the lives of these animals. Some, if not most, of the animals come to Paws & Tails from bad situations. With the love and care they receive from volunteers, they believe in humanity again. My wish is that more people will find even a few hours a month to give back, because volunteering your time and seeing all it can do – like being a voice to a voiceless animal – is so incredibly rewarding!
WWD: Cara Delevingne, Aly Raisman and Ava Phillippe Browse Aerie’s Hidden Gems Marketplace
The outdoor event celebrated the launch of Aerie’s fall collection.
Aerie’s Hidden Gems Marketplace wasn’t hidden for long. Fans of the intimates brand queued around the block just before its opening at noon on Tuesday.
Brand partners Cara Delevingne, Laura Harrier, Aly Raisman and Ava Phillippe stopped by the Gansevoort Plaza pop-up, which feted the launch of Aerie’s fall collection. The foursome made their way around the marketplace, posing for photos at the DJ booth and in front of a bra-fitting station.
Local businesses across New York City staged stalls at the event: florist Brooklyn Blooms allowed visitors to craft their own bouquets, while Inked By Dani decorated attendees with trendy temporary tattoos.
“Aerie is a hidden gem itself, so we were inspired by the hidden gems of New York City,” said Stacey McCormick, Aerie’s chief marketing officer. “We have over 400 local stores within many, many communities all across the country. So localization is such a big deal for us.”
Ava Phillippe at the Aerie Hidden Gems Marketplace. MICHAEL SIMON/STARTRAKSPHOTO.COMAly Raisman at the Aerie Hidden Gems Marketplace. MICHAEL SIMON/STARTRAKSPHOTO.COM
Kiosks hosted by PopUp Bagels and Schmackary’s Cookies handed out complimentary treats, the former nicknaming their sample “Be schmear” — a play on the brand’s slogan “Be real.”
Since its inception in 2006, Aerie has built a cult following around its cozy staples, as well as its message; American Eagle’s sister label was the first major intimates retailer to feature a diverse range of models, and they don’t photoshop their campaigns.
“I’ve always been really interested in Aerie’s branding, which focuses on empowering women and being authentic and real and true to you,” Phillippe said. “That really resonates with me, so it was just a natural partnership.”
The Hidden Gems Marketplace also featured a bra donation bin pegged to Aerie’s charity partner, Free the Girls. The nonprofit empowers survivors of sex trafficking, providing economic opportunity by giving them gently used bras to sell to other local women.
“They’re near and dear to our hearts just because of their mission,” McCormick said. “Knowing that our bras can go to something good is fantastic.”
AEO Inc. Announces a Planned Leadership Transition
PITTSBURGH–(BUSINESS WIRE)– American Eagle Outfitters, Inc. (NYSE: AEO) today announced that Michael Rempell, Chief Operations Officer, has made the decision to leave the company in early fiscal 2024. After over 23 years with AEO, Michael has decided to pursue personal interests and spend more time with his family. The company has commenced a search for a successor and Michael will stay on to ensure a smooth and successful transition.
Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer commented, “For over two decades, Michael has been a valuable member of our executive team and I am grateful for his numerous contributions. He has been a strategic leader and instrumental in taking the company from $1 billion to over $5 billion in revenue, investing in technology and infrastructure that created AEO’s world class operations and made us an innovator in our space. Michael’s accomplishments have been substantial, including the launch and expansion of our successful and profitable digital channel; building an efficient and fluid sourcing capability; transforming our supply chain to compete on both speed and cost; and most recently, strengthening our store operations. He has had an extraordinarily positive and lasting impact on our organization and our people. As a result of Michael’s influence and leadership, we have a strong foundation in place which we will build upon for continued success.”
Michael Rempell commented, “This decision did not come easily. AEO is a wonderful company and has been a home away from home, where colleagues have become lifelong friends. It has truly been an honor and privilege to work alongside such remarkable talent and I know that I’m leaving the company in very good hands. I want to thank Jay for his incredible leadership, vision and guidance over the years and our board of directors for their tremendous support. Anchored by strong operations and the best brands in retail, I am certain that AEO’s brightest days are still ahead.”
In a separate release today, the company provided an update on second quarter results.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, Hong Kong and Japan, and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 260 international locations operated by licensees in approximately 30 countries. In 2022, AEO released its first annual Building a Better World report, which outlines two decades of ESG achievements through the company’s Planet, People and Practices initiatives. For more information, please visit www.aeo-inc.com.
AEO Inc. Expects to Report Second Quarter Results Above Guidance
PITTSBURGH–(BUSINESS WIRE)– American Eagle Outfitters, Inc. (NYSE: AEO) expects second quarter revenue to be approximately flat to last year, ahead of previous guidance for revenue to be down low-single digits. The company also expects operating income to exceed previous guidance of $25 to $35 million.
“I am pleased to note that demand picked up in late June, with strength continuing as we introduced our initial Fall collections in July, reflecting newness centered on emerging trends across our brands. Looking to the second half of the year, we remain focused on building our category leadership and creating unique customer connections, while maintaining a sharp eye on improved profit flow through,” Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer commented.
In a separate release today, the company announced a planned leadership transition.
The company will report its final second quarter 2023 results by press release on Wednesday, September 6, 2023.
The company will also host a summary of AEO Inc.’s second quarter results with a live conference call that will be webcast on Wednesday, September 6, 2023 at 4:30pm, Eastern Time. The conference call can be accessed by calling:
Domestic: (877) 407-0789
International: (201) 689-8562
A replay will be available following the call at:
Domestic: (844) 512-2921
International: (412) 317-6671
Conference ID number: 13736966
The call will be archived and made available online in the Investor Relations section on AEO’s website, www.aeo-inc.com
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, Hong Kong and Japan, and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 260 international locations operated by licensees in approximately 30 countries. In 2022, AEO released its first annual Building a Better World report, which outlines two decades of ESG achievements through the company’s Planet, People and Practices initiatives. For more information, please visit www.aeo-inc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent our expectations or beliefs concerning future events, including second quarter and annual fiscal 2023 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “potential,” and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 28, 2023 and in any other filings that we may make with the Securities and Exchange Commission in some cases have affected, and in the future could affect, the company’s financial performance and could cause actual results for fiscal 2023 and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the negative impacts of the COVID-19 pandemic and related operational disruptions; the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.
Teen Vogue: American Eagle Is Going Back to School With Maddie and Kenzie Ziegler
Back-to-school season is around the corner, and everyone needs a good pair of blue jeans. Now, American Eagle and the Ziegler sisters, Maddie and Kenzie, have you covered. Today, July 27, AE launched a new campaign focused on its staple pair of jeans. The brand hopes this collection will connect authentically with Gen Z. That’s where Maddie and Kenzie come in. The pair are debuting an exclusive product collaboration designed by the dynamic dancing, acting, and singing duo.
“AE jeans are the #1 brand for women of all ages and men in our core demographic — and we are excited to unleash our denim domination for back-to-school,” Jennifer Foyle, President and Executive Creative Director of AE and Aerie said in a press release. “The socially-connected Ziegler sisters and their personal approach to styling represent a genuine connection to our customer community, providing the inspiration to incorporate AE jeans into any outfit, for any occasion.”
The collection was inspired by ’90s fashion, which is perfect for our ongoing nostalgia renaissance. From jean vests to comfortable blue jeans, there’s something for everyone as they figure out their back-to-school wardrobe. Below, we chatted with the Ziegler sisters about the collaboration, Canadian tuxedos, and how to plan the perfect first-day-of-school outfit.
Teen Vogue:How did your collaboration with American Eagle come to be?
Kenzie Ziegler: I feel like the way we started this collection, we kind of based it off of one single piece, which was the vest, and we kind of wanted to go for that model-off-duty kind of vibe. New York, Brooklyn kind of feel. And everything is super versatile. You can see in the photos that we kind of dressed it differently. We seriously love every single piece, and it was so awesome collaborating with American Eagle. We got to pick everything down to even the buttons, which was really cool.
TV:What is it like getting to work together on this collection as sisters?
Maddie Ziegler: I think for us, we don’t really have the opportunity to work together too much anymore. We used to go from literally working together every single day to not, so any chance we get to work together is so special. And especially something like this was so fun because we really bond over inspiration and clothing, and we really have, which is a blessing because it would not have been a fun process making a collection with two completely different opinions, but we really share the same love with everything that we wear. So it was honestly such a breeze. It was so easy and so fun, and just fun to be inspired together and share ideas. And we had a great time.
TV:How would you describe your personal style? Or, I know finding your personal style is hard, so maybe what has your journey looked like?
KZ: I feel like I have finally found my style. I mean, I always go for basically baggy jeans or cargo pants and just a tiny top. I definitely choose comfort more often than cute unless I’m going out and doing something. I feel like I used to kind of experiment in different ways, but I feel like now I’ve found my style, and I have a go-to outfit that I always wear.
MZ: I’m very, very, very similar. I think Kenzie and I, especially now, unless we’re really trying to, like if we’re really going out, then we’ll put a lot more effort into our clothing, but we just wear what makes us feel comfortable but also what makes us confident. So even if it’s not necessarily the most elaborate outfit, it’s what makes us feel cute. So I think just a good silhouette is what we really look for, like a baggy jean or pants and a baby tee or some sort of cropped tee or a tank top. And then just a really cute sneaker, I think, is what we gravitate towards because it’s comfortable. It’s cute. It’s easy. And I think that’s kind of what we’ve honed in on a really nice way.
TV:And I know you guys mentioned the jean vest was the start of it all. So, outside of the vest, or maybe it is the vest, but for you, is there a specific piece from the collection you think shoppers are going to want to immediately get their hands on?
KZ: I feel like there are so many pieces from the collection, but I feel like one of our staples is our leather jacket. I feel like it’s super versatile, just like everything in this collection. You can really wear it anywhere. But Maddie and I love wearing leather jackets at all times, even when it’s hot out. So I feel like that could definitely be one of them just because it is so versatile, and I feel like you can never go wrong with a simple black leather jacket.
MZ: I think also the jeans, just because you can wear them every single day. I literally wear them every single day.
TV:If you were to go back to school this upcoming fall, thinking of this collection specifically, what would be your first-day fit?
MZ: Call me crazy, but I honestly love — and this was inspired by Jennifer Aniston in the nineties — our black slip dress with just a baby white tee underneath and a scrunched-up sock, and either a Doc Marten or a sneaker. I think would be so cute for the first day. And then, from literally starting day two, it would be just a jean and a t-shirt every day. But I would say the first day, I would try and commit to wearing that outfit because I think it’s so cute. It’s still casual, but it definitely is a way of being like, “Okay, I’m committing to this style today, and I really love it.”
KZ: I think I would definitely either go for our pair of jeans or our cargo pants. I’m super into cargo pants, so I feel like that would be my go-to. And I think our kind of longer sleeve white tea I think would be super cute. And even a white t-shirt with even the vest over it, I feel like you can totally dress that down. And the way you accessorize it, I feel like could definitely make it more casual.
TV:I think just when it comes to style, especially when you’re younger, it’s so difficult to figure out what you want to wear, especially with so many trends. But for you guys, what would be your advice to young people going to school in a couple of weeks and they’re scared to try new things with their clothes? What would be your advice to them?
MZ: I would say one, I know it’s easier said than done, but try not to care what people think. And if you really want to wear something, then you should wear it. If it makes you feel confident, then you should experiment and try it. And if you realize you don’t like it, then that’s totally okay. But I think as we’re getting older and growing up, and trends are going to come and go, I think it’s really good to experiment now. And I think also just have fun. And if you want to be comfortable, then just be comfortable. But if you want to wear a dress or a skirt, you should do that as well.
American Eagle Outfitters will unfurl the next phase of its back-to-school campaign with a collaboration with sisters Maddie and Kenzie Ziegler that features a collection and ad campaign.
Maddie Ziegler, 20, is an actress and dancer, while Kenzie Ziegler, 19, is a singer/songwriter, actress and dancer. The exclusive collaboration, AE x Maddie & Kenzie, will launch Thursday in AE stores and online.
“AE jeans are the number-one brand for women of all ages and men in our core demographic and we are excited to unleash our denim domination for back-to-school,” said Jennifer Foyle, president and executive creative director of AE and Aerie. “The socially connected Ziegler sisters and their personal approach to styling represent a genuine connection to our customer community, providing the inspiration to incorporate AE jeans into any outfit, for any occasion.”
Craig Brommers, chief marketing officer at American Eagle Outfitters, discussed how they decided to feature the Ziegler sisters and what goes into making those decisions for the key back-to-school selling season.
“This is always a cultural moment for American Eagle. When we look at culture, we look to things like music, we look at streaming, we look to things like community impact, and obviously we look at social media. These two sisters continue to come up because they are multihyphenate. They are involved in music, they are involved in acting, they’re obviously a big presence on the social media platforms that Gen Z cares about the most, especially TikTok,” said Brommers.
An added bonus was that these sisters are from Pittsburgh, the roots of American Eagle.
“These girls have moved on and are living in Los Angeles now, and there was something kind of nice about the fact that American Eagle has moved into bigger territories and we’re not just involved in the 50 states but we’re around the world. We’re always looking for Gen Z talent that amplifies this idea of positivity, optimism, and having met these girls personally and working with them for the months we were developing the collaboration and campaign, these are salt-of-the-earth, lovely human beings and kind and generous and active,” said Brommers.
He said he’s been leading global marketing for some of the best-known American brands, and sometimes people phone in these collaborations. “These sisters were in it, and were working with the designers. They were very authentic in what they wanted to create together, and I think that was something that was refreshing,” said Brommers.
Maddie Ziegler became known for appearing in Lifetime’s reality show “Dance Moms,” from 2011 to 2016, and has starred in a series of music videos by Sia. She has also appeared in films, TV shows, concerts, and ad campaigns. Kenzie Ziegler also appeared on “Dance Moms,” as well as several TV series and films, in addition to releasing several albums and touring around the world.
“We are so excited to be collaborating with American Eagle — a brand that we have not only grown up with, but has allowed us to create something which reflects who we are today,” said Maddie Ziegler.
“We worked closely with the AE team to design pieces that show each of our individual styles while also drawing inspiration from an era that we love so much,” said Kenzie Ziegler.
The Ziegler sisters created the mood boards and were excited by the ’90s vibe. They came to the New York design office and worked with the AE teams. “As individuals, Maddie and Kenzie have slightly different vibes which was also exciting to explore,” said Brommers.
“Maddie is someone who has overt femininity and loves to explore that, whereas Kenzie, with her music vibe, is slightly edgier. The combination of those two aesthetics is a fun thing for us to explore in this collaboration,” he said.
Among the collection’s highlights are the Ziegler Low Rise Maxi Skirt and the Ziegler Leather Dad Jacket and Waistcoat, said Brommers. Other items in the collection include a knit minidress, hoodie tank, bra tank, midi skirt, sunglasses, purse, vest, wide-legged trouser, relaxed straight jean, long-sleeve baby T, and lace slip dress. The entire capsule of ‘90s classic and easy silhouettes are meant to be mixed, matched and styled multiple ways, he said. The collection retails from $17.95 to $149.95, with the sweet spot expected to be between $50 and $75.
Right now, the collaboration is for one season, but they’ll see what develops.
The Ziegler sisters were AE’s first choice for the season, and Brommers noted that combined they have 58 million followers across multiple social platforms. “They also have this entrepreneurial hustle that Gen Z really likes as well. We love the fact that their aesthetic is multidimensional just like Gen Z.”
The campaign was shot in Los Angeles in a studio, which is different for American Eagle because generally they shoot outdoors. “It was fun to do something a little bit different in a studio, and a lot of the content was self-shot,” he said.
They gave the sisters Polaroids and old-school digital cameras. “We really wanted them to play with it themselves. You’ll see a lot of mixed media in the campaign. It was really important to them and important to us that they had true involvement in developing this campaign,” he said.
The campaign and videos were shot by Acre, a boutique agency that AE frequently works with. “They really get us and they really get retail. They’ve done such great work with the talent that we work with, whether that’s the stars of ‘Outer Banks,’ or the stars of ‘The Summer I Turned Pretty’ and now with the Zieglers,” Brommers said.
Ads will appear on ae.com, American Eagle’s owned social media channels such as Instagram, TikTok, Snap, and Threads. “We’ll be making our biggest outdoor push in quite some time,” he added. Starting in August, ads will appear on a 3D billboard in Times Square and advertising liveboards throughout New York City. AE also shot short-form video for YouTube. “Anywhere that Gen Z is consuming media, you will likely see this campaign,” he said. The brand plans to “flood the feed” with styling content and #AEJeans reviews by its community and some of Gen Z’s creators.
The b-t-s campaign is centered on all things jeans. Maddie and Kenzie are styled in the latest seasonal assortment and denim fits. New silhouettes for women include the Dreamy Drape Baggy Wide Leg Jeans and Super High Rise Baggy Wide Leg Jean. They are layered with tops like the Big Hug Waffle Shaket and Low Back Bodysuit.
The AE x Maddie & Kenzie collection will be featured in AE’s windows and in the center lead, and many stores will spotlight a Ziegler collaboration corner in the store. He said the Ziegler sisters will also play an active role in the launch of the collection. The sisters will introduce the AE x Maddie & Kenzie collection, along with must-haves from the seasonal assortment on their social channels.
As for what he anticipates will be bestsellers, Brommers said, “Anything to do with denim will be red-hot. We’re getting back to the early stages of that denim cycle again. We see a lot of denim-on-denim dressing. There are some really strong pieces in the Ziegler collab, but also in the AE collection.”
Brommers declined to reveal AE’s advertising budget and said they believe so much in this creative that this will be the biggest back-to-school media spend post-pandemic. He called it “pretty darn close” to 2019 levels.
“For American Eagle, back-to-school is our Super Bowl. We have to make sure we have a campaign that cuts through a very competitive retail environment. We think the combination of the Ziegler sister collaboration plus our focus on denim domination will be the winning ticket for us as we get into the back-to-school season,” said Brommers.
American Eagle Dominates Denim This Back-To-School Through An Exclusive Product Collaboration With Maddie & Kenzie Ziegler And An AE Jeans Takeover Across Social Feeds
Along with a 90s-inspired women’s collection designed by the Ziegler sisters, the brand joins Gen-Z as they head back to school in AE jeans.
07.27.23 NEW YORK – American Eagle Outfitters, Inc. (NYSE: AEO) introduces American Eagle’s (AE) back-to-school (BTS) campaign with a focus on the brand’s iconic jeans through a 360 degree approach to product, creative and social that authentically speaks to Gen Z. The brand also announces the debut of AE x Maddie & Kenzie, an exclusive product collaboration designed by Maddie and Kenzie Ziegler, available online and in-stores beginning today.
“AE jeans are the #1 brand for women of all ages and men in our core demographic–and we are excited to unleash our denim domination for back-to-school,” said Jennifer Foyle, President & Executive Creative Director – AE and Aerie. “The socially-connected Ziegler sisters and their personal approach to styling represent a genuine connection to our customer community, providing the inspiration to incorporate AE jeans into any outfit, for any occasion.”
Longtime fans of AE, Maddie and Kenzie paired their elevated approach to outfitting with inspiration from the 90s. Collaborating with the expertise of AE’s design team, the Zieglers sought to design pieces that reflected them, while also alluding to who they are as individuals. From the Ziegler Low Rise Maxi skirt, to the Ziegler Leather Dad Jacket and Vest, the entire capsule of 90s classic ease silhouettes are meant to be mixed, matched, and styled multiple ways. The collection ranges in price from $17.95 – $149.95.
“We are so excited to be collaborating with American Eagle – a brand that we have not only grown up with, but has allowed us to create something which reflects who we are today,” said Maddie Ziegler.
“We worked closely with the AE team to design pieces that show each of our individual styles while also drawing inspiration from an era that we love so much,” said Kenzie Ziegler when asked about the duo’s work on the collection.
Back-to-School Newness in AE Jeans
Headlining the brand’s fresh new campaign, and inspired by Maddie and Kenzie’s style, the duo appears in the latest seasonal assortment that features denim fits for all occasions. AE’s BTS collection and expansion of its jeans assortment includes the following styles to create the ultimate ‘It Fit’:
For him, newness in jeans across the Airflex and Ultrasoft assortment. A Shirt Shop with new Hooded Flannels and Knit Shirts.
For her, newness in jeans with the Dreamy Drape Baggy Wide Leg Jeans and Super High Rise Baggy Wide Leg Jean. Layering essential tops like the Big Hug Waffle Shacket and Low Back Bodysuit.
AE Jeans Takeover Across Social
AE continues to show its leadership in jeans by remaining a constant in the social feeds of Gen Z. Kicking off today, the brand will ‘flood the feed’ with styling content and #AEJeans reviews by its community and some of Gen Z’s favorite creators.
Beginning today, the Ziegler sisters will debut the AE x Maddie & Kenzie collection, along with their must-haves from the seasonal assortment on their social channels. Additionally, AE’s latest campaign can be seen in ae.com, in-store, across owned social including Instagram and TikTok, and starting August in OOH marketing, including a 3D billboard in Times Square and advertising liveboards throughout NYC.
About American Eagle
Since 1977, American Eagle has offered an assortment of specialty apparel and accessories for everyone that enables self-expression and empowers our customers to celebrate their individuality. The brand has broadened its leadership in jeans by producing innovative fabric with options for all styles and fits for all at a value. We aren’t just passionate about making great clothing, we’re passionate about making real connections with the people who wear them. Visit www.ae.com to find your perfect pair of #AEJeans.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, Hong Kong and Japan, and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 260 international locations operated by licensees in approximately 30 countries. In 2022, AEO released its first annual Building a Better World report, which outlines two decades of ESG achievements through the company’s Planet, People and Practices initiatives. For more information, please visit www.aeo-inc.com.
AEO Building a Better World Volunteer of the Month: Melanie, SEO Content Strategist
AEO associates share our commitment to doing better, being better and building a better world. We’re proud to spotlight our people who are making a real and lasting impact in their communities.
Meet Melanie, SEO Content Strategist on the AE Digital Marketing team. Since 2016, Melanie has spent time volunteering with the Humane Animal Rescue of Pittsburgh – logging an impressive 600 hours of service with the organization through dog walking and her work on their Junior Advisory Council. She’s sharing more on her service and how others can join in making a difference in their local communities.
Tell us about your volunteer service at Humane Animal Rescue of Pittsburgh (HARP).
I am a volunteer at HARP, where I get to walk dogs at the North Side shelter, train new volunteers, and work with staff to provide care to pets awaiting their forever homes. I have loved my time with the organization so much that I also recently joined their Junior Advisory Council where I co-chaired our inaugural Barks & Brews fundraiser event this past spring!
How many years have you been volunteering?
I started volunteering at HARP (then the Humane Society of Western PA) in 2016 as a dog walker and have more than 600 hours of service with the organization between weekly dog walking and my work on the Junior Advisory Council.
Why is giving back to the community important to you?
I have always had a strong desire to serve my community and found HARP to be a great fit for my life. I am able to walk dogs once a week, meet like-minded people who share the same passion for animal care and contribute to an organization that I believe in. HARP does incredible life-saving work in the Pittsburgh community with their two local shelters, wildlife center and community outreach programs, and I am grateful for a chance to contribute to their mission.
How do you think that being an active participant in your community helps to Build a Better World?
To me, building a better world means giving back to the community and getting involved with organizations you’re passionate about! It also means utilizing AEO’s associate engagement programs designed to level up those contributions and give resources back to organizations in need, like the company’s Volunteer Recognition Program and Team of 10 volunteer initiative that allows associates to organize a service project with fellow associates.
What are some of the benefits you have found in volunteering? What have you learned?
There is such joy to be found in volunteering and contributing to my community on a consistent basis. There’s nothing better than seeing the animals at HARP blossom with the care and love they receive, and then seeing them adopted out into their forever homes. People often assume volunteering at an animal shelter would be too sad, but there is a great amount of joy as well. And I can promise that I’ve only adopted one dog from HARP, not all of them!
I encourage everyone to look into their local shelter or rescue organizations and learn how to get involved through volunteering, fostering, donating or adopting, as I’ve learned that everyone can make a difference when it comes to animal advocacy.
