By: Kari Hamanaka | Link to article

The shipping container revolutionized the shipping industry. Maybe next is the concept of open sourcing the supply chain.

That’s the idea driving American Eagle Outfitters chief supply chain officer Shekar Natarajan as he looks to expand the concept of sharing across retail when it comes to the resources used to move product.

“We’re trying to create a new age of supply chain technology and supply chain operations, which I think is going to level the playing field,” Natarajan said Monday at the NRF Supply Chain 360 conference in Cleveland.

It helps American Eagle is building up its logistics capabilities, with its acquisitions last year of logistics provider Quiet Platforms and parcel delivery company AirTerra. In May the company said it struck a partnership with Pitney Bowes to further boost its delivery capabilities as logistics becomes a promising business for American Eagle, with the retailer’s executive chair and CEO Jay Schottenstein calling Quiet a “growth vehicle” during the company’s quarterly earnings call last month.

Quiet helped reduce American Eagle’s number of shipments per order and also slashed delivery times for online orders by 13 percent during the company’s fiscal first quarter ended April 30.

Natarajan showed off a modular, collapsible shipping box system that the company is developing with the idea it could be used to ship items from multiple brands to a customer’s doorstep.

“I see that the world is going to be even more constrained with supply chain assets and so price escalation is going to happen,” Natarajan said. “And so to counter all of that, we need to have consolidation networks.”

That’s what American Eagle is now trying to do with Quiet, he added.

The box Natarajan showed is a first-generation prototype. A second-generation model is set to come out in July, with the goal to begin piloting it at one of Quiet’s facilities by the end of the year with brands that want to participate.

Quiet currently works with 70 brands, ranging in size. Saks Off Fifth and Fanatics are some of the more recent additions.

The pitch to other brands is that by consolidating those supply chain resources, enough scale can be achieved to compete with the likes of Walmart, for example.

Natarajan pointed out that American Eagle moves 225 million units a year. Walmart, by comparison, moves some 50 billion units. To try and compete from a logistics standpoint with Walmart would require multiple companies pooling their businesses together.

“So, in a place where you’re competing on expenses, in a place where you’re competing on products, the last thing you want to do is compete on supply chains,” Natarajan said. “Because competing on supply chains is really competing on resources, labor, utility, land, Mother Nature and we’re only going to make it worse.”

All that said, Quiet is seeing success in other companies wanting to join its platform, according to Natarajan.

“This is very similar to how we think about [the] internet. [The] internet was actually built on open protocols,” he said.

The current run up in fuel prices is also incentivizing more retailers to take up the concept of shared supply chain services with Quiet, he added.

“I don’t think any logistics company and the CEO of that company will ever go back to their boards and say, ‘Let me make less money next year than this year.’ That’s not going to happen. We all would love to think that the world of containers is going to drop back to $1,500…for every container. That’s not going to happen either,” he said. “So, I think the prices are here to stay. Inflation is here to stay with us, and so the best thing to do is look for expense reduction models. So this is a structural change. This is how you distribute the inventory. This is how you ship a package with others shipping to the same destination.”

The challenge to solve as more companies join Quiet’s roster is how to connect different systems since each retailer has its own legacy processes.

The first solution the company’s working on is that shipping box prototype.

“All these are going to take time to do,” Natarajan said, “but I see a world where there’s no alternative. There’s going to be very big companies, and the small companies will not have a level playing field unless and until they start really competing on what makes them unique, which is brands and products.”

By: Samantha Olson | Link to article

Over the past few years, Joshua Bassett has opened up about his journey with mental health and revealed that he’d been hospitalized after experiencing stress-induced heart failure and septic shock. The High School Musical: The Musical: The Series star has also been transparent about his experience with anxiety and panic attacks. Since then, he told GQ that he’s been seeing a therapist, reading self-help books, and journaling.

As one of American Eagle’s Members Always cast members, Joshua partnered with Bring Change to Mind, a nonprofit dedicated to helping end the stigma and discrimination surrounding mental illness. During Mental Health Awareness Month in May, the 21-year-old actor and musician gave a powerful presentation for the organization to destigmatize the shame surrounding mental health and spread the word about American Eagle’s Future Together grant program, which will award a total of $200,000 total for teens and young adults to create positive change in their local communities.

“Speaking up is the only way we’ll break stigmas and realize our shared humanity. Shame cannot survive being spoken,” Joshua wrote with a clip he posted to Instagram. In the video, he gets emotional as he reads out a few anonymous responses to a prompt asking students to write something they’re afraid to say out loud.

After reading responses, which varied from individuals not wanting to repeat toxic familial cycles to fearing that they aren’t enough, Joshua closed out the conversation with impactful quotes. “As I close, I want to ask the question: who would you be if you weren’t afraid?” he started. “When we set ourselves free from the bondage of shame and fear and step into who we really are, there is no limit to who we could become. In a world of darkness, we can be beacons of light. Starting with yourself — when you change your inner world, you watch the world change — but it starts with you.”

Since the presentation, Joshua caught up with Seventeen about his mental health advocacy work with American Eagle, his upcoming (and first-ever!) tour, and the highly-anticipated third season of High School Musical: The Musical: The Series.

17: You’ve been candid about your mental health journey over the years and continuously use your platform to provide mental health resources. What inspired you to speak up for the first time?

Joshua Bassett: Growing up, there weren’t many people in the entertainment space who spoke openly about emotional well-being. There are so many of us out there who are hesitant to speak up because we mistakenly believe that we’re alone. To find inner peace, we have to be able to show up as our authentic selves in this world, and nothing makes me happier than using my voice to help people.

17: What drew you to this partnership with American Eagle and Bring Change to Mind?

JB: I love how American Eagle’s Members Always campaign is all-inclusive to humans — it’s about more than just clothes. they’re creating a safe space for change and a community of acceptance. Bring Change to Mind’s mission to end the stigma and discrimination surrounding mental illness is so important to me as someone who struggles myself, and knows the power in speaking up and being true to yourself.

17: You’ve also expressed that therapy has helped you and your mental health in big ways. Is there anything you wish someone would have told you before seeking professional help?

JB: I think people often wait until things get really bad before they seek help, and it doesn’t have to be that way. You wouldn’t wait until you were deathly ill to get a physical checkup, and I think routine conversations with someone you can trust are essential to staying healthy. It’s also not a sign of weakness- but instead one of strength, that you’re able to admit that everyone needs help now and again. You’re not broken for wanting support and help. I made a deal before I started therapy that I would be “honest at all costs” and I’ve never looked back.

17: What can fans expect from season 3 of High School Musical: The Musical: The Series?

JB: Season 3 is a whole lot of fun, with the expected drama that comes from theatre kids at summer camp. It felt like season 1 again, but fresher and more elevated. Endlessly proud of this show and the safe space that it provides!

17: Are there elements of Ricky’s character you can relate to? What has playing Ricky taught you over the years?

JB: Ricky always tries to do the right thing and be the best person he can be, despite what life throws at him and that’s an admirable trait I’ve tried to emulate. Over the seasons, Ricky has really developed a sense of emotional maturity and I think I’ve done and continue to do the same in my own life.

17: You’re about to embark on your first-ever world tour. Is there anything you’re looking forward to while you’re on the road?

JB: It’s my first tour so I’m honestly looking forward to the whole experience but most of all playing my songs live in person with the fans and getting to connect with everyone. I’m also really excited about playing with a band. A dream come true!

17: What advice would you give to your 17-year-old self?

JB: I would tell younger me: always speak your truth. Never settle for anything less than you deserve. Find a safe space with people you trust, and simultaneously provide a safe space for everyone you interact with. Also, no matter what hardships arise, you will always come out the other side stronger than you were before.

Parts of this interview have been edited and condensed for clarity.

By: Shoshy Ciment / Link to article

Jay Schottenstein was one of three fathers honored at the 80^th Annual Father of the Year Awards on June 14.

The entrepreneur and philanthropist, who serves as the chairman and CEO of American Eagle Outfitters and as chairman of the board of Designer Brands Inc., accepted the award at the Sheraton New York Times Square Hotel in New York City at a luncheon benefitting nonprofit organization Save the Children.

“What makes this day so special for me is having my family here today,” said Schottenstein, mentioning his wife of 45 years, Jean, as well as his three sons, their wives and his six (soon-to-be seven) grandchildren. “I’ve learned to be a good father, you must have a great partner. I am fortunate to have a great wife.”

Between 2005 and 2009, Schottenstein served as CEO of DSW. In addition to his board positions and current role as CEO of American Eagle, the business mogul also serves as chairman of American Signature Inc./Value City Furniture, Schottenstein Property Group and more. He and his family are benefactors to a variety of community and national funds and organizations.

Schottenstein explained how the legacy he forged through his children and grandchildren is a direct result of the guidance he received from his father, a major role model in his life.

“He was my role model in how he conducted himself. He and my mother taught me so much including to be consistent, have a strong belief in God and a responsibility to help others,” Schottenstein said. “My wife and I have worked hard to pass those values to our children and grandchildren.

Schottenstein was honored alongside NBC 4 New York/WNBC weather anchor Dave Price and Ohio State University head football coach Ryan Day. Georgia native Jason Nalls was awarded the Shok C. Sani “All-Star” Dad award, for his service to his community and family.

The ceremony took place at noon and was hosted by Mark Shriver, special advisor at Save the Children.

The event honored American Eagle Outfitters chief Jay Schottenstein, weather anchor Dave Price and Ohio State football coach Ryan Day.

By: JEAN E. PALMIERI / Link to article

NEW YORK — Hugs and handshakes were rampant among top executives in the menswear industry when, after a two-year pandemic-fueled hiatus, they were able to meet again in person at the Father of the Year luncheon.

This year marked the 80th edition of the event, which shines a light on fatherhood and also serves as a fundraiser for Save the Children’s U.S. programs.

The event, at the Sheraton New York Times Square, drew a slew of retailers and manufacturers who turned out to honor Jay Schottenstein, chairman and chief executive officer of American Eagle Outfitters and executive chairman of Designer Brands Inc., along with WNBC weather anchor Dave Price and Ohio State University head football coach Ryan Day.

All told, the luncheon raised around $900,000 for the organization, according to Dan Orwig, president and CEO of the Father’s Day/Mother’s Day Council and president of Peerless Clothing.

Mark Shriver, emcee and special adviser to the CEO of Save the Children introduced Jason Nalls Sr., a truck driver and father of four from Newnam, Georgia, who won the Ashok C. Sani All-Star Dad award. His 12-year-old daughter read the essay that wooed the judges and outlined how, as a deacon of his local church, a mentor to student athletes and a volunteer at a local cancer institute that spearheaded the saving of a local community center, he epitomizes strength and service. “My dad is a big deal,” she said.

Nalls initially thought the award was a joke, but when he realized it was for real, said with a laugh: “It means I’m doing something right.” He attributed his skill as a dad to his parents, who taught him to be kind, courteous and to always treat people with respect.

Next up was Price, who said it would be impossible to be a father of the year without a mother of the year, a role model like his own dad who wasn’t perfect but would strive to be a little better every day, and his two children.

Price got emotional when saying that his job, which afforded him the opportunity to travel extensively covering weather events around the country and visit military installations in the Middle East, was “intoxicating,” but paled in comparison to being a father.

“The greatest thrill, joy, title and work is being a dad to Eli and Caroline,” he said.

Schottenstein, a father of three sons and “six — soon to be seven” grandchildren, said that even though his own father has been gone for 30 years, he still thinks of him whenever he has a decision to make. From his dad, he was taught to be considerate, have a strong belief in God and to help others, attributes he tries to pass along to his children and grandchildren.

The event wrapped up with the award to Day, whose son Ryan Jr., or RJ, was proudly videotaping his father’s speech on his phone from the back of the room, where he was seated with his two sisters. Day said he was honored to be a part of an event that imparted positivity and recognized people who have an impact on other people’s lives.

Although he lost his dad at the age of nine, Day said he was lucky to have other men — relatives and community members — step up to fill that void. “I recognized things in those men that I respected and grabbed on to them,” he said.

And these skills are the things he strives to pass on to his kids. “There’s no handbook to being a dad and a husband,” he said. But he has learned that the best way to live life is to learn from the past, not worry too much about the future and just “be in the moment.”

By: Kristi Dosh / Link to article

Last September American Eagle launched its #AEAthletic Dept program to take advantage of new name, image and likeness rules and legislation allowing college athletes to work with brands. Three new athletes are the campaign: UCLA softball star Maya Brady, Sam Houston State cheerleader and star of Netflix’s Cheer Jada Wooten, along with LSU track and field athlete, Eric Edwards Jr.

American Eagle kicked off its initial campaign last fall by working with Klutch Sports Group to name Kedon Slovis, quarterback for University of Southern California, Sevyn Banks, cornerback for Ohio State, and Tank Bigsby, running back for Auburn University, as its inaugural #AEAthleticDept partners. The brand later worked with WME Sports to secure Olivia Dunne, All-American gymnast for Louisiana State University.

“We’re a leader at being first to market with innovation that keeps our Gen Z customer engaged, so when we learned that the NCAA relaxed its sponsorship rules, we took action and launched a college athlete marketing program called #AEAthleticDept,” said American Eagle CMO Craig Brommers.

The first four athletes to work with the brand each have profiles where consumers can learn more about them as individuals and also shop each athlete’s list of favorite apparel:

• Tank Bigsby
• Olivia Dunne
• Sevyn Banks
• Kedon Slovis

Wooten says the partnership was an easy decision for her because American Eagle is a brand she has a long relationship with as a consumer.

“I don’t remember a time in my life where AE wasn’t there. In reflection, the brand was just part of our family. My mom and sister always wore AE jeans long before I was old enough. When I finally fit them, I was in them.”

“Over the years as I grew and developed my identity, my style changed many times. Throughout all the changes AE was always a staple,” said Wooten. “When all else failed I went back to the basics: AE jeans, T’s, and sweats. It felt like I was able to wear the brand no matter my age or style. The AE vibe always works for me.”

Edwards agrees that American Eagle is a good fit for his personal style as well.

“American Eagle is a great style fit for me. I feel it embodies who I am, not only as a track athlete, but my overall individuality.”

Asked how the athletes were chosen, Brommers said the brand looks for athletes who are relatable to the collegiate consumers it is trying to reach.

“As with all of our partners, we look for influential talent who embody our brand values of authenticity, individuality and most importantly – relatability to our community.”

“Sports are one of the top passions of our customers, and our goal for the program is to further highlight these interests through identifying college-level athletes who are relatable and inspirational to their peers,” said Brommers. “We’re excited to add some new players to the bench including Maya Brady, Jada Wooten and Eric Edwards Jr. who all bring a unique and personal perspective on style and represent diversity across different schools, communities and sports.”

Brommers says the brand is watching engagement both through social and email marketing as it measures the success of the campaign.

“We’ve already seen strong customer sentiment and engagement across our social platforms with significant drive in visits to the site through email featuring the athletes with a 45% increase in email open rate. We also continue to see an influx of direct messages on social media from athletes looking to be a part of what we’re building. These athletes are resonating with the customer.”

Athletes in the program create authentic content that is featured across both American Eagle’s and each athlete’s own social channels, in addition to the brand highlighting their personal stories and passions within blog posts.

• Enters Into Exchange Agreements for Outstanding Convertible Senior Notes due 2025
• Announces $200 Million Accelerated Share Repurchase Program (ASR)
• Pursuing Upsize and Extension of ABL Facility to Unlock Additional Liquidity

PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters Inc. (NYSE: AEO) today announced that it has entered into exchange agreements with certain holders of its 3.75% Convertible Senior Notes due 2025 in exchange for a combination of cash and shares of the company’s common stock.

The 2025 Notes to be exchanged represent approximately $342 million of the outstanding principal amount. Following the exchange, approximately $70 million in aggregate principal amount will remain outstanding. The exchange transactions are expected to close on June 8, 2022.

The company has also entered into an accelerated share repurchase agreement (ASR) with JPMorgan Chase Bank, National Association to repurchase $200 million of the company’s common stock. This equates to approximately 16.7 million shares based on the closing price on June 2, 2022 and represents approximately 8% of the company’s fully diluted shares outstanding as of that date. The final number of shares to be repurchased will be based on the volume-weighted average price of the company’s common stock during an averaging period. The ASR has been entered into in connection with AEO’s existing share repurchase authorization of 30 million shares.

AEO expects to fund the cash portion of the amounts payable under the exchange agreements and the ASR using available cash on hand and borrowings under the company’s existing $400 million ABL facility.

The company is also pursuing an upsize and extension of its ABL facility to $600 million with a term of 5 years, to unlock additional liquidity. The company has not yet entered into definitive documentation, and there is no guarantee that the ABL credit facility will be amended, or of the terms of any such amendment.

This press release does not constitute an offer to sell or a solicitation to buy any of the securities described herein, nor shall there be any offer, solicitation, or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Advisors

J. Wood Capital Advisors acted as financial advisor and placement agent to the Company with Wachtell, Lipton, Rosen & Katz serving as legal counsel.

* * * *

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 200 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. 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.