The annual list celebrates the women in power who are impacting their businesses and communities.
In conjunction with the Fairchild Media Group’s Women in Power event on Sept. 13, the second annual WWD x FN x Beauty Inc 50 Women in Power list celebrates the achievements of the industry’s most powerful women on a global scale. Compiled by editors at WWD, Beauty Inc and Footwear News, this alphabetical list includes women who are creating impact — on their businesses, and on the world around them.
The 2022 list of 50 Women in Power features exclusively new names. For the inaugural list, please see the 2021 50 Women in Power report.
Jennifer Foyle, President and Creative Director of AE, Aerie and Unsubscribed, American Eagle Outfitters
In addition to running many of American Eagle Outfitters’ day-to-day operations, Jennifer Foyle is the brainchild behind the Aerie, Unsubscribed and Offline by Aerie brands. She’s also second in command at American Eagle Outfitters, serving as right-hand woman to the company’s chairman and CEO. Foyle was the first to use non-airbrushed models for the Aerie Real campaign — a practice that’s become an industry norm nearly a decade later. Under her leadership, Aerie has posted more than 30 consecutive quarters of growth, surpassing the billion-dollar revenue mark, with a $3 billion target. During the pandemic, the seasoned retail executive also spearheaded the launch of activewear subbrand Offline by Aerie and slow retail brand Unsubscribed. Both have since opened brick-and-mortar stores. — Kellie Ell
WWD, FN and Beauty Inc asked the 50 Women in Power, “If you could have any power in the world, what would it be?” See here for their answers.
NEW YORK (AP) — From his perch as American Eagle Outfitters’ chief supply chain officer, Shekar Natarajan is taking a page from shared ride service Uber to modernize the supply chain for retailers.
Since Natarajan joined American Eagle almost four years ago, the teen retailer has acquired two supply chain businesses for several hundred million dollars, as Natarajan makes the supply platform shareable with other companies and thus more efficient and sustainable. They form the core of the company’s supply chain platform, which operates independently from the retailer.
Natarajan, whose resume includes stints at PepsiCo, Walmart and Target, believes that small companies can’t compete in logistics with the likes of Amazon and Walmart and should instead pool their resources together. The end game: a model that will take all the packages coming from different distribution centers and then funnel them to a consolidation center with one package delivered to the shopper.
Natarajan’s mission comes as the pandemic has upended the global supply chain, forcing retailers of all types to scramble to unclog goods from all points of the distribution network, while facing spiking transportation costs.
So far, over 100 partners have signed up to use the platform, including 14 retailers like Kohl’s and Steve Madden, six large tech companies and 42 carriers. It will start to consolidate packages by year-end, targeting the nation’s top 25 cities, which face the biggest congestion of packages. Natarajan is also working on a bioplastic collapsible container that consolidates packages from different retailers in different locations to ship to a customer.
Associated Press recently interviewed Natarajan in New York to discuss his model, why it matters and how his personal background shaped his mission. The interview has been edited for clarity and length.
Q. What’s wrong with today’s retail supply network?
A. They’re nonlinear, inflexible and inefficient. We’ve certainly learned over the past two years how little visibility companies have into their end-to-end operations and how much information is siloed. Unfortunately, most supply chain leaders continue to be chained to the legacy infrastructure they inherited when they took on their role. Our opportunity is to help companies unchain their supply chains by evolving to a new, network-based model that’s open, interconnected and more dynamic, so they can respond more quickly and efficiently to changes in the consumer and business environment.
Q. Will the supply chain ever go back to the normalcy of the pre-pandemic days?
A. (The parcel delivery network) is going to explode from 20 billion parcels to 40 billion parcels when it happens in five years, six years or seven years. And in that world, you would probably need 16 million people. You would need 823 fulfillment centers. You have to build 5,000 distribution centers. You have to build 8,400 delivery hubs. You’ll put a million trucks on the road, and you will have 7,500 delivery vans. And that’s not sustainable. So there is inflation brewing all over the supply chain. And so the problem we have uncovered during the pandemic is the vulnerability of the chains.
Q. Can small chains ever compete with the big chains?
A. I have worked for a lot of big companies. In context, American Eagle moves 200 million units. Walmart moves 50 billion units. So what Walmart does in a day and a half is what American Eagle does in a year. And Amazon does it in half a day. So if anyone is thinking that dropping more resources, adding more infrastructure, hiring more people, getting more trucks on the road is going to help them compete better with Amazon, I have some bad news for them. It’s not going to happen.
Q. How did overhauling American Eagle’s supply chain help?
A. It reduced the shipping times to the stores by 80%. This pair of jeans used to take us 14 days to bring back into stock. Now, it takes two and a half days. The packages that you receive…it used to take us five days, seven days. Now it takes us on an average, two and a half days. And if you look at the number of miles every parcel traveled, we reduced it by 2 billion miles.
Q. Why are you naming the boxes for consolidated shipping Tag Along?
A. It goes back to my roots of where I came from. We used to hitch a ride in an auto rickshaw to go and get to the place we wanted to go. And so the concept of tagging along with others is always something that resonated with me the most.
Q. How did your personal background shape your mission?
A. I come from slums in India, but access to education, paying for funerals, getting electricity were all big thing for us. We lived in a single room. I came here with $34 in my pocket. And so what America did was create a level playing field for me. It didn’t matter where I came from. It gave me an opportunity to go work for some of the brightest companies. And so when I looked at the reality of the smaller businesses and how they’re competing, I looked at my own personal life.
American Eagle Outfitters Reports Second Quarter Results
AEO Inc. Reports Second Quarter 2022 Results. Expanding Actions to Strengthen Financial Performance
Second quarter results impacted by challenging consumer backdrop
Expanding scope of expense and capital expenditure reductions
Significant progress made on right-sizing inventory
Pausing quarterly cash dividend to provide additional financial flexibility
September 7, 2022
PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the second quarter ended July 30, 2022.
“This is an unprecedented time in retail. As we cycle exceptional demand from last year, a tougher macro environment is impacting consumer spending behavior. Second quarter performance reflected these challenges, constraining revenue and amplifying margin pressure as we fully cleared through excess spring and summer goods,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.
“In a shifting macro environment, we are focused on controlling the controllables. We entered the second half with inventory levels in a much better position and an assortment that is current for the Fall season. Given ongoing external uncertainties, we have taken additional actions to improve financial performance. We have made more expansive expense reductions and are pulling back further on capital expenditures. As an additional cautionary move, we have paused our quarterly cash dividend to strengthen our cash position. Our brands and products remain highly relevant and sought after by our customers. I am confident we will successfully navigate current challenges, and set AEO up for a stronger future.”
Second Quarter 2022 Results:
Total net revenue of $1.2 billion, flat to the second quarter of 2021. Our supply chain business, Quiet Platforms, contributed approximately 2 percentage points to revenue growth. Brand revenue declined 2%.
Aerie revenue of $372 million rose 11% versus second quarter 2021, reflecting a 25% 3-year revenue CAGR. Comp sales declined 6% versus second quarter 2021.
American Eagle revenue of $778 million declined 8% versus second quarter 2021 reflecting a -3% 3-year revenue CAGR. Comp sales declined 10% versus second quarter 2021.
Consolidated store revenue declined 2%. Total digital revenue declined 6%. Compared to pre-pandemic first quarter 2019, store revenue increased 1% and digital revenue increased 60%.
Gross profit of $370 million declined 26% from $502 million in the second quarter of 2021 and reflected a gross margin rate of 30.9% compared to 42.1% last year. Higher markdowns drove 750 basis points of the rate decline with roughly a third reflecting higher end of season selloffs to fully clear excess spring and summer goods. Higher freight costs impacted the gross margin by approximately 200 basis points and Quiet Platforms had a 60 basis point impact as we integrate and ramp up the platform. Delivery, warehousing costs and rent also increased, offset slightly by lower incentive compensation accruals.
Selling, general and administrative expense of $308 million increased 5%. SG&A increased 110 basis points as a rate to sales versus second quarter 2021 primarily due to increased store wages, corporate compensation, professional services and advertising, partially offset by lower incentive compensation accruals.
Operating income of $14 million included an approximately $30 million impact from higher end-of-season selloffs, $25 million from higher freight costs and a $9 million loss from Quiet Platforms, and compared to operating income of $168 million in the second quarter of 2021.
GAAP EPS of ($0.24). Adjusted EPS of $0.04 excludes $60 million of debt related charges primarily linked to the convertible notes exchange transaction and includes an approximately $1 million addback to net income of interest expense associated with the company’s convertible notes.
GAAP average diluted shares outstanding were 180 million. Adjusted average diluted shares outstanding were 207 million, compared to 209 million in the second quarter of 2021. Unrealized dilution associated with the company’s convertible notes was 25 million shares compared to 36 million shares in the second quarter of 2021 reflecting the timing and impact of exchange transactions completed in the quarter. The company also repurchased 17 million shares in the quarter as part of its accelerated share repurchase program. Third quarter weighted average share count is expected to be 198 million shares.
Inventory
Total ending inventory at cost increased 36% to $687 million compared to $504 million last year. From a brand standpoint, AE and Aerie each drove roughly half of the increase. Total units were up 22%, reflecting better in-stocks and earlier receipts due to improved flow across the supply chain. Store openings over the past 12 months across Aerie and Offline also drove a portion of the inventory increase. Ending second quarter inventory consisted of current BTS and fall merchandise.
The company continues to make progress adjusting inventories lower to be in line with demand trends. Third quarter ending inventory is projected to be up in the mid-single digits with fourth quarter inventory expected to be down year-on-year.
Capital Expenditures
Capital expenditures totaled $69 million in the second quarter and $128 million year-to-date. For the year, management now expects to spend approximately $250 million, compared to prior guidance of $275 million.
Shareholder Returns
In the first half of the year, the company paid two quarterly cash dividends of $0.18 per share, amounting to approximately $65 million. The company also repurchased approximately 17 million shares through an accelerated share repurchase program totalling $200 million. The total cash returned to shareholders of $265 million was the highest level since 2015. To increase financial flexibility while navigating near-term macro challenges, the company is pausing its quarterly cash dividend.
Outlook
Quarter-to-date, demand trends remain difficult, with brand revenue down in the high-single digits following exceptional growth and a record Back-to-School season last year. Assuming current trends continue, the third quarter gross-margin rate would be in the mid-30s and fourth quarter in the low-30s. This reflects higher markdowns in anticipation of a more promotional retail environment and the company’s seasonal clearance cadence which is more weighted to the fourth quarter.
Management has expanded expense cuts with a focus on store payroll, corporate expense, professional services and advertising. These actions are now expected to drive $100 million in annualized expense reductions to plan, compared to our prior target of $60 million. This translates to SG&A dollars remaining relatively flat to last year in the second half, compared to prior guidance for low-to-mid-single digit growth.
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, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 270 international locations operated by licensees in 25 countries. 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 third quarter and annual fiscal 2022 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 29, 2022 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 2022 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.
Pictures of delivery packages stacked like a game of Tetris at someone’s door have become points of pride posted in the deep recesses of driver online forums.
However, these packages—five, six, seven and counting—arriving at consumers’ doorsteps daily across the country have become nightmares for cities’ residents and the environment, along with companies’ bottom lines, as Quiet Platforms works on the retail industry’s logistical reinvention.
The logistics company earlier this month revealed a universal delivery label that, at its simplest, creates a unified network among the more than 40 carriers it counts as partners. Quiet is on the second prototype of a modular, collapsible delivery container system called Tag Along that will be released as a pilot by the end of the year. All of this is happening as Quiet, currently in 10 markets, expects to more than double that footprint to 22 markets by mid-June of next year.
The totality of these efforts connects largely disparate, but major, players within goods movement to create a functioning system that’s eco-conscious but also saves money as consumer demand only continues to ramp for delivery of everything from meals and groceries, to outfits and home goods.
The universal delivery label, while mundane in name, is critical to Quiet and Natarajan’s ambitions.
Currently, a customer can order, for example, a T-shirt from a business. That item is then shipped through a carrier’s network, such as a FedEx or UPS, depending on cost, service offered and where the package is going. A label is then placed on that package, that allows it to only travel within that one carrier’s network.
In today’s increasingly complex transportation systems and all the factors that could potentially impact service performance and cost, staying within one carrier network can be limiting.
Things happen. Flexibility, Natarajan pointed out, gives shippers the ability to recover from disasters or, in some cases, avoid them by making-last minute tweaks. It also allows the ability to pick and choose carriers to trim costs.
“Creating a universal label unchains the concept,” Natarajan said. “You’re no longer tied to that carrier at that time of initiation of the label, and so then I could pick a first mile carrier, a different middle mile carrier.”
The flexibility to plug a package into different networks means everything when speed is linked with brand.
When American Eagle paid $350 million for what was then called Quiet Logistics in late December 2021, which came on the back of its purchase of AirTerra, it signified to the markets a shift in thinking: that logistics is now king.
American Eagle executive vice president and chief operating officer Michael Rempell said as much in May during the company’s call with analysts.
“We believe that edge fulfillment, share distribution and shared logistics is going to be as transformative to retail as the shift to omnichannel was a few years ago,” Rempell said.
The thinking’s won over a number of believers.
Natarajan said Quiet’s nabbed 14 new clients since the American Eagle acquisition, adding to the more than 60 brands now utilizing its services. Customers include, of course American Eagle and sister brand Aerie, along with Outdoor Voices, Birdies, Baggu, Steve Madden and Peloton. More recent additions include Fanatics and Saks Off Fifth.
“Our pipeline is the strongest it has ever been in the history of Quiet,” Natarajan said. “So, obviously, we are moving in the right direction. We are excited about it. We are in a hurry to go build this scale because scale is what’s needed to get this thing to be really efficient as a network.”
While the universal label is important, the backbone to that infrastructure are the fulfillment and consolidation centers. The company is eyeing top metropolitan statistical areas to grow, largely following the same path of where carriers have built their regional networks in places such as New York, San Francisco, Los Angeles, Dallas, Chicago, Miami, Orlando, Charlotte, Atlanta and on.
One of the biggest misconceptions in the media with Quiet’s ambitions is that it’s somehow looking to compete with that of an Amazon Logistics or Walmart. That’s not the aim or the purpose, Natarajan said.
“We are not competing against the likes of Amazon. Amazon is a great company and we wish them well. We want them to be very successful, but basically we are doing this [because] we really believe in the fact that solving for the logistics problem in a smart way is going to be a competitive differentiator for all companies,” he said. “I’m talking about the carriers. I’m talking about the brands. I’m talking about mom-and-pops. I’m talking about the environment. I’m talking about financial viability. I’m talking about carbon emissions. I’m talking about entrepreneurship. So, for me, what we’re trying to solve has a very beautiful ethos attached to it. We’re not trying to build a private network.”
That’s one of the reasons Natarajan said the company doesn’t see the need to build out its own transportation fleet, which would pull it into the parcel carrier business. That would just add to the existing problems logistics, largely e-commerce logistics, creates.
“We are basing the premise on the fact that there’s so much capacity, the world doesn’t need to add more trucks on the ground,” he said. “They need to share better and if they’re able to share better, the economics is obviously lower and you have the advantages of a big player without being a big player.”
The process of getting competitors to be open to the concept of sharing will not happen immediately and the supply chain chief acknowledged that.
“It’s like anything,” he said. “There is 20 percent of the crowd, which is excited and they understand the world that we’re all living [in] and we’ve got to do it. And 60 percent is kind of wait and see, and 20 percent is really reluctant. We see that this change is no different from what we’ve seen in our own organizations. I don’t change my breakfast every day. In the morning, I eat the same thing every day, so why do I expect the world to change for what I want to do?”
Logically speaking, Natarajan brings up a point he has said countless times at conferences and in interviews when he’s talking about Quiet. That is, brands compete on product. The back-end, to a certain extent, brands already share in the way of factories. Logistics, he said, should be no different.
Quiet’s not stopping with its expanding real estate footprint, the delivery label and the new container system it’s set to soon pilot. Natarajan said the company has “big plans” on the last mile that will soon be revealed.
“We want to chase down what is best for the world and what is right for small companies and what is right for carriers and everyone who is participating in this ecosystem,” Natarajan said. “We want to make sure everyone wins in this marketplace and does so in a very smart way. The world doesn’t need more resources; the world needs more sharing.”
Quiet Platforms Expands Partnership with Fanatics to Extend Same-Day and Next-Day Delivery to 11 Additional Markets
Quiet Platforms Expands Partnership with Fanatics to Extend Same-Day and Next-Day Delivery to 11 Additional Markets
Pittsburgh, PA – August 23, 2022 –Quiet Platforms, a wholly owned subsidiary ofAmerican Eagle Outfitters Inc. (NYSE: AEO), and Fanatics, a leading provider of licensed sports merchandise and global digital sports platform, today announced an expansion of their partnership, first launched in May 2022, to enable same-day and next-day delivery of Fanatics orders to customers in 11 additional U.S. markets. Fanatics customers in Atlanta, Boston, Chicago, Dallas and St. Louis can already choose these fast delivery options, and the expanded partnership will see Fanatics extend the service to Houston, New York, Phoenix, San Francisco and Seattle next year.
“We began working with Fanatics a few months ago and this expansion demonstrates the value of our partnership and our ability to be a key contributor of the brand’s growth across products, services and geographies,” said Shekar Natarajan, EVP, Chief Supply Chain Officer of AEO Inc., who also leads Quiet Platforms. “This extended partnership will also enable Quiet Platforms to offer same-day and next-day national delivery to other brand customers within our connected network.”
“Fanatics is pleased to expand our partnership with Quiet Platforms and provide more of our U.S. customers with same-day and next-day delivery options,” said Lonnie Phillips, Chief Customer Officer, Fanatics. “We are constantly looking to improve customer experience and by leveraging Quiet Platforms’ technology and fulfillment and logistics network we are able to better meet faster delivery expectations.”
Under the extended partnership, Quiet Platforms continues to innovate the traditional shipping and logistics market with its technology-enabled shared supply chain platform and nationwide fulfillment and delivery network.
About Quiet Platforms
By creating interoperable open and sharing supply chain platforms powered by an intelligent and unified orchestration layer, Quiet Platforms helps companies collaborate to drive scale efficiencies and sustainability. The plug-and-play, open-sharing platform is enabling globally renowned retailers such as Peloton, Steve Madden, Li & Fung and more than 60 others to optimize their inventory and access digital capabilities such as track and trace to increase efficiency and improve margins. A wholly owned subsidiary of American Eagle Outfitters Inc. (NYSE: AEO), Quiet Platforms levels the playing field for small and midsized retailers by providing access to shared supply chain assets and relationships across every link of the chain—so they can ship less and operate more sustainably.
About Fanatics
Fanatics, Inc. is the ultimate one-stop sports fan destination that ignites and harnesses the passion of fans and maximizes the presence and reach for preeminent sports partners globally. Leveraging long-standing relationships with more than 900 sports properties, a database of more than 80 million consumers worldwide and a trusted brand name, Fanatics is furthering its innovation across the sports landscape by building the leading global digital sports platform, complete with offerings including licensed merchandise, trading cards and collectibles, digital collectibles and NFTs, and online gambling and iGaming.
The world of fashion is beginning to recognize the need for systemic change. For the one in four Americans living with disabilities, chronic pain or reduced mobility and dexterity associated with aging, shopping can be a real challenge.
Thankfully brands, particularly those beloved by Gen Z, are now seeking out inclusivity experts, like Sinéad Burke, to guide their decision making. The disabled (yes, she prefers that term) educator, advocate, author and founder and CEO of accessibility consultancy Tilting the Lens, helps brands (like Gucci!) democratize the entire purchase journey, making it equally accessible to all consumers.
Burke is among a select group of women in the industry who are leading the charge … including a real-life Emily in Paris, whose campaign to make inclusive bras began in college.
Bringing Back Self Confidence and Dignity Through Adaptive Apparel
24-year-old Emma Butler witnessed it firsthand. As a young girl, she watched her mother lose her ability to dress herself pain-free due to a chronic illness. For women like her mom, she describes the process of shopping as “dehumanizing.”
Apparel options for the disabled have existed for years, but so-called “adaptive clothing” is often more medical than modern, more sterile than sexy. And this is especially true in the world of intimatewear.
It’s one thing to find intimates that all women – including those with disabilities -can put on painlessly and with ease. But Butler knew that women of all abilities want garments that are also beautiful, and that make them feel worthy, feminine, empowered and yes, sexy.
“I asked my friends with disabilities to write about what it means to feel fashionable, beautiful, confident and sexy as a disabled or chronically ill woman.” Armed with that data, and with the help of Maddie Hyland, a lingerie industry consultant who had designed stylish collections for Vince Camuto, Jessica Simpson and Lucky Brand, Butler started Liberare, a brand that now offers chic, modern bras, underwear and sleepwear with unique fasteners, fabrics and styles to make dressing easier for all women.
“There are two aspects of our lingerie that are really powerful,” says Butler. First, they provide women with the ability to dress independently and with less pain. And also, our products are beautiful. They are made by and for disabled women and our social media campaigns focus on being disabled and beautiful. Wearing a beautiful pink or black lace bra is very empowering.”
Butler, who recently moved to Paris because of the country’s expertise in lingerie and to be closer to her supply chain as she migrates her line toward more sustainable fabrics, has caught the eye of the investment community. After finding little interest from Silicon Valley, investors in the United Kingdom and France embraced her commitment to fashionable adaptive apparel and in the fall of last year she closed her first round of financing. As the brand grows, and she continues to disrupt the $400 billion global adaptive apparel market, she will seek additional financing early next year.
Blurring the Line Between Apparel and Adaptive Apparel
“One of the greatest misconceptions that we have around products designed for this community is that in order for them to exist, they need to be functional only, which means they’re never designed with an aesthetic in mind,” says Burke. She believes companies need to design for both form and function. And those products should be marketed to all women.
And while Liberare is a bright light in an industry ripe for change, they are not the first brand to design apparel for everybody and every body.
Tommy Hilfiger was a pioneer in this space. In 2018 Tommy launched one of the industry’s first adaptive lines. “It was outerwear, which was great, but women still needed help getting their bras on,” says Butler.
Another company quick to fill the void in the market was American Eagle Outfitters’ Aerie brand of intimates, a Gen Z favorite. Back in 2018, before inclusivity and body positivity were the buzz words they are today, Aerie debuted a campaign featuring 57 unique, real customers, of all shapes, sizes and abilities, unretouched and unfiltered, wearing the brand’s bras.
“Aerie was one of the first brands to celebrate real women, natural unretouched beauty and body positivity,” explains Jennifer Foyle. The President and Executive Creative Director for AE and Aerie says the brand has been successful in redefining the standards of beauty, encouraging women to love their real selves.
And it seemed that this nod to authenticity and inclusivity really clicked with consumers. The 2018 campaign featured all kinds of women – some in wheelchairs and others with insulin pumps and ostomy bags – who were rocking Aerie bras. Feedback was so positive the brand adapted some styles to better accommodate the needs of all their customers.
“That campaign went viral because it showed what our brand stands for – real people representing our community,” says Stacey McCormick. Aerie’s Senior Vice President of Brand Marketing says offering adaptive products means all of Aerie’s community members feel heard, seen and considered. “It means they have a safe place they can go to look for things that are unique to their disability.”
“We have seen some strong brands like Tommy Hilfiger, Slick Chicks and Unhidden take up space within this market,” says Burke. “I think where we’ll see further acceleration is through collaborations that bring the expertise in supply chain of a large brand and the lived experience and expertise of those working in the startup space in order to really create systemic change.”
One such collaboration launched yesterday.
Aerie X Liberare
What happens when a gutsy young CEO of an adaptive intimates start up “cold DMs” an executive at a respected leader in inclusive intimate apparel with the same core values? You get Aerie x Liberare.
The collection, which dropped yesterday on aerie.com and liberare.co, features Liberare’s stylish adaptive bras and underwear, with unique fastening features, lace styles and a new blush color option.
“A lot of brands are interested in working with us but the energy we got from Aerie – they were authentic, they were excited, there were no ableist words thrown around. And I just thought – this is the brand for us. They are truly in this for the right reasons. This is the beginning of a really wonderful partnership,” say Butler.
And the feelings seem mutual.
“They share the value of building a brand through community and being an inclusive brand that welcomes all,” says Aerie’s McCormick. “The feedback we get is that it feels authentic, genuine and real – it’s not just a marketing play. It’s just a collection we believe in.”
AdAge: How American Eagle Is Using TikTok, Roblox and Meta Quest For Its Back-To-School Campaign
These days, if you are a chief marketing officer preparing a back-to-school ad campaign, you should be prepared to change course quickly. That’s the approach of American Eagle’s CMO Craig Brommers, who said the company is closely watching paid search on Google to better understand what Gen Z is searching for and altering its strategy as tastes evolve.
Like other brands facing economic headwinds, American Eagle has honed in on the platforms Gen Z loves and refocused brand messaging on value.
But keeping up with changing fashion trends has proved to be a challenge. Brommers said the last three months have shown how quickly fashion trends, such as cargo pants and Barbiecore (a fashion trend involving a lot of pink), can evolve—forcing marketers to quickly adapt.
“If you’re a CMO and you think you can lay out a beautiful, two-month-long back-to-school campaign and let it ride, that won’t work,” Brommers said. “You have to be constantly evolving and meeting customers where they are.”
For American Eagle, that would be in the digital world. One aspect of the brand’s latest back-to-school campaign involves letting customers watch a behind-the-scenes video of the campaign photo shoot via Meta Quest 2 set up in eight store locations. The in-store experiences will start Aug. 20, but people can also watch at home through Facebook 360 Video or YouTube 360 video.
According to Brommers, Meta Quest 2 brings a digital element to shopping, even as customers head back to malls in person. “We want to give the customer something they don’t get anywhere else,” he said. “It’s more than just going to the mall and buying a new pair of jeans.”
The last three back-to-school seasons have been unlike any other, and the same is true for this year. In July, inflation hit a 41-year high of 9.1%. At the same time, layoffs, high gas prices and stock market declines have consumers bracing for a recession. Financial turmoil is causing consumers to rethink purchases, including for the upcoming school season. Gas and food spending is trumping purchases such as apparel and accessories.
“The macro climate is more challenging, but we’ve been doing this a long time,” Brommers said. “We’re sticking to what we know, and our biggest category—jeans.”
The brand has refined its marketing messaging around its apparel value by reminding customers that a pair of jeans is long-lasting, comfortable, school-approved and on-trend. That messaging fits with Gen Z’s interest in sustainability and being more conscious of the value of their purchases.
American Eagle is also doing a TikTok hashtag challenge using TikTok’s SoundOn platform, which was rolled out in March and allows artists to upload their music directly to TikTok to earn royalties. American Eagle will use several Gen Z musicians—including singer and bassist Blu DeTiger, multi-instrumentalist spill tab and alt-pop duo Tabakian x Tanisakoas—as the campaign’s common thread across Meta Quest, Roblox and TikTok.
“Our Gen Z customer is leaning into their passions,” Brommers said. “Music is often a connection point to those moments—jamming with friends, going to a concert. We thought the two passion points of music and jeans make sense this season.”
American Eagle also tapped emerging TikTok artist Katherine Li to update a portion of her forthcoming release as the brand’s back-to-school anthem. Li and five other creators will use her song to kick off a hashtag challenge on Aug. 23, inviting users to create a music video while wearing American Eagle jeans and using the hashtag #AEJeansSoundOn. The challenge will end on Aug. 25. Three winners will receive a $3,000 gift card and their videos will appear on American Eagle’s Times Square billboard.
On Aug. 19, Blu DeTiger will perform a song in American Eagle’s Roblox location, its Members Always Club. Players can also participate in a back-to-school-themed scavenger hunt to unlock custom American Eagle virtual toys and plushies.
WWD EXCLUSIVE: American Eagle Is Going Back to School With New Music Technology
American Eagle is getting into the groove with three music-focused activations in the metaverse as Gen Z prepares to go back to school.
Starting this month, the AE brand — which is part of parent company American Eagle Outfitters — has activations (both IRL and online) across Meta’s Oculus, Roblox and TikTok’s SoundOn platforms.
“American Eagle has always been about leaning into Gen Z passion points during the back-to-school season and we thought that as this particular customer gets outside and lives their best life again that music would be such a great passion point to lean into,” Craig Brommers, chief marketing officer at American Eagle Outfitters, told WWD exclusively.
The activations will allow shoppers to have one foot in the physical world and one foot in the metaverse, starting this Friday with musician Blu DeTiger’s avatar performing a virtual concert inside the AE experience on Roblox. The following day, AE will roll out a hybrid experience by way of Meta’s virtual reality Oculus. Later this month, AE will also be the first brand to partner with TikTok’s new SoundOn marketing and distribution platform in a hashtag challenge that will allow users to create their own “AE anthem” while wearing their AE jeans.
“These are immersive experiences,” Brommers said. “But they’re also in ways that our customers tell us. They want to be able to live their life — yes, in the metaverse — but also in this universe as well. So this will be a great opportunity for them to connect the dots from the physical and metaverse world.”
Jennifer Foyle, president and executive creative director of the AE, Aerie, Unsubscribed and Offline by Aerie brands, added: “We are excited to offer our community multiple ways to express their personal style.”
The AE x Oculus activation arrived in eight American Eagle stores — in places like New York, Miami, Los Angeles and Ohio — this week. Shoppers are able to use the Oculus goggles for free in stores to view behind-the-scenes footage of an AE back-to-school video. If the experience is a hit, the brand will likely expand the program to other locations, Brommers said.
The updated AE x Roblox experience will include Friday’s concert with Blu DeTiger performing her song “Vintage.” Consumers can also spend time in the AE virtual clubhouse and purchase virtual apparel products for their avatars. And while many brands are experimenting with digital fashion, Brommers said AE’s Roblox experience has had 30 million unique visitors since its inception.
“There’s something in Roblox that we’re offering our fans that people are excited about,” he said.
In addition, American Eagle is the first brand to partner with TikTok’s new SoundOn vertical and will create a “AE Back-to-school anthem” with musician Katherine Li. Unlike TikTok’s traditional video-making platform, the SoundOn technology allows artists to gain royalties from their music.
Brommers said the platform also makes it easier for artists to upload music, use consumer-engagement data to make new music and then target an even wider audience. Musicians can also find and create duets with other artists on the platform.
“One of the things that Gen Z is passionate about is that anyone at any time can be discovered and be the next music star; people who are plucked from obscurity and all of a sudden go viral and are now potentially making their impact in music,” Brommers said. “As we’ve learned on this platform, you really have to let the creator lead the way a bit.”
The TikTok SoundOn rollout also includes a #AEJeansSoundOn hashtag challenge from Aug. 23 to Aug. 25. Three winners will receive $3,000 gift cards and a chance to be featured on American Eagle’s 26-story storefront in New York’s Times Square. “It will be kind of like a fun 15 seconds of fame for a customer out there,” Brommers said.
The latest marketing initiatives come as other brands are pulling back marketing spend to curb rising prices and other inflationary pressures. Brommers said American Eagle has other plans.
“You have to ride the economic wave and we’re riding it right now,” he explained. “We’re leaning into the season and hopefully capturing our fair share of jeans market share and our fair share of overall back-to-school share. American Eagle has been out in the market for a long time and we know that not only do we need to continue to create these innovative experiences as a brand, we also have to offer value to our customers.
“We are aware of the economic situation, but we’ve been doing this for a long time,” Brommers added. “We know that if we stay the course and we stay consistent, we’ll win in the long run.”
American Eagle Leads the Way for Innovation Across TikTok, Roblox and Meta Quest 2
Back-To-School Campaign Celebrates Musicians and the Uniting Power of Music and Jeans
08.18.22 NEW YORK – (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) announced today the American Eagle (AE) brand’s music-focused initiatives across Meta Quest 2 and Roblox, and the first-of-its-kind campaign with TikTok’s SoundOn platform. AE recently launched its fall 2022 Back-To-School (BTS) campaign featuring Gen Z musicians Blu DeTiger, spill tab, duo Tabakian x Tanisako and continues to engage with its community through exclusive experiences to drive youth culture. The brand is excited to deliver music experiences in the metaverse, in-store activations, and a hashtag challenge (HTC) on TikTok featuring a custom song written by one of Gen-Z’s favorite creators.
“This season, we are excited to offer our community multiple ways to express their personal style through a series of activations meant to inspire customers to pair the jeans they love with the music they love,” said Jennifer Foyle, President – Chief Creative Officer, AE and Aerie. “As a leader in innovation, American Eagle is the first to partner with TikTok’s SoundOn platform to continue to collaborate with emerging creators and artists, and provide them with a space where they can share their passion for music with the world.”
First-Ever Brand Campaign with TikTok’s SoundOn
AE will be the first brand to utilize TikTok’s SoundOn to enlist one of its artists to create a custom song.
SoundOn, TikTok’s new music marketing and distribution platform, allows artists to upload their music directly to TikTok and over 90 other platforms to begin earning royalties.
AE tapped emerging TikTok artist Katherine Li to update a portion of her forthcoming release as the AE BTS anthem. Katherine and five creators will use the song to kick off a dedicated HTC on August 23, inviting users to create a music video while wearing AE jeans and using the hashtag #AEJeansSoundOn. The HTC will end on August 25 with AE selecting three winners to receive a gift card valued at $3,000, and their video will appear on AE’s Times Square billboard.
Behind-the-Scenes of Back To School via Meta Quest 2
AE will be the first brand to offer customers the in-store experience of viewing a 360 video on Meta Quest 2.
Within eight locations across the country, consumers can experience a behind-the-scenes video of the brand built-out studio space, shot specifically for the VR technology, featuring AE’s 2022 BTS campaign.
The experience will premiere in-stores on August 20, and fans of the brand can also view at home through FB 360 Video or YouTube 360 video.
BTS Bash on Roblox
On August 19, the BTS campaign headliner Blu DeTiger will perform her song “Vintage” on a custom indie pop-themed stage.
Blu’s stage will feature a first-of-its-kind “like” module allowing audience members the opportunity to interact with the performance by being able to hit a like button. Players can also participate in a BTS-themed scavenger hunt to unlock custom AE toys and plushies.
The brand’s club will also feature two DJ booths, playing Hip Hop/R&B and Pop/Dance music, each with their own merch stand.
Fave Fits
For him, super soft flannel sets, tonal dip-dyed and camo printed tees and new Baja hoodies give a fresh update to novelty. While 90s straight denim shows up for the first time in flex and rigid fabrications, Airflex 360 fabrics make their debut in Athletic Skinny and Athletic fit styles. Baseball and bucket hats round things out in twill & corduroy, making comfort the name of the game this fall from head to toe.
For her, oversized plaids and soft and sexy tees layered with sweaters and fleece make for a complete look up-top. For bottoms, jeans still reign supreme with new low rise 90s Skinny Kicks, Mom and Flare styles among the highlights, while 90s cargo pants and Skater trousers emerge as stylish woven pant alternatives to denim. Complete the look this fall with western inspired accessories like woven belts, cowboy boots, bandanas and wide brim hats.
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About American Eagle
Since 1977, American Eagle has offered an assortment of specialty apparel and accessories for men and women 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. Visitwww.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, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 270 international locations operated by licensees in 25 countries. For more information, please visitwww.aeo-inc.com.
Quiet Platforms Announces Launch Of New Nationwide Delivery Network
Growing Network of 40+ National, Regional and Local Carriers Covers All US Postal Codes
Pittsburgh, PA – August 9, 2022 – Quiet Platforms, a wholly owned subsidiary of American Eagle Outfitters Inc. (NYSE: AEO), today announced that it has launched the Quiet Platforms Delivery Network to provide an expansive national delivery service for retailers and brands. The new network enables customers to gain instant nationwide coverage through a trusted portfolio of carriers using a universal delivery label, eliminating the need for multiple integrations, complex invoicing or lengthy contract negotiations. The network dynamically manages performance at the shipment level, ensuring the best decision is made for every parcel to be shipped, based on delivery commitment, quality of service and delivery cost. The integrated and growing transportation network already numbers more than 40 carriers, including Asendia, GLS, Gofor and Veho.
“We are reimagining the way retailers and brands deliver service to their customers, while taking on the complexity of logistics,” said Shekar Natarajan, EVP, Chief Supply Chain Officer of AEO and head of Quiet Platforms. “We’re leveling the playing field by offering high-quality delivery experiences without prohibitively high investments in management and technology infrastructure. Our ecosystem also gives carriers the opportunity to reach a wide range of new customers without lengthy lead times or complexity.”
The Quiet Platforms Delivery Network features a mix of national, regional and local carriers that cover all US postal codes. In addition to nationwide coverage, the service offers redundancy in major markets to preserve the consumer experience regardless of individual carrier constraints or exceedingly high demand during peak periods. Quiet Platforms’ technology further extends the power of the carrier portfolio by deferring carrier assignment to the edge of the network—optimizing cost and service levels for both shippers and carriers and leading to delivery time reductions of 1–2 days and delivery cost reductions of up to $1.00 per parcel.
“Quiet Platforms is reinventing traditional approaches to fulfillment and delivery through innovations in technology,” said Charles Griffith, CTO of Quiet Platforms. “Providing the ability to dynamically adjust fulfillment and delivery decisions in real time based on an ever-changing set of constraints is something others have contemplated, but never achieved.”
About Quiet Platforms
By creating interoperable open and sharing supply chain platforms powered by an intelligent and unified orchestration layer, Quiet Platforms helps companies collaborate to drive scale efficiencies and sustainability. The plug-and-play, open-sharing platform is enabling globally renowned retailers such as Peloton, Steve Madden, Li & Fung and more than 60 others to optimize their inventory and access digital capabilities such as track and trace to increase efficiency and improve margins. A wholly owned subsidiary of American Eagle Outfitters Inc. (NYSE: AEO), Quiet Platforms levels the playing field for small and midsized retailers by providing access to shared supply chain assets and relationships across every link of the chain—so they can ship less and operate more sustainably.
