A NEW BREED OF DENIM, THAT CAPTURES THE STYLE AND SOUL OF NEW YORK CITY

09.22.21 NEW YORK — (BUSINESS WIRE) — American Eagle Outfitters, Inc. (NYSE: AEO) today announced the launch of AE77, a new premium denim brand for men and women inspired by the convergence of artistic vision and a planet-first mindset. The brand will debut with its first store in New York City’s SoHo neighborhood designed by Stefan Beckman Studio, with an e-commerce site to follow on October 15^th and a second store by year end.  

“AE77 is an exciting new opportunity for AEO Inc., which leverages our leadership in jeans, capitalizes on our strong innovation in style, fit, and fabrications, and incorporates our best sustainability practices,” said Jay Schottenstein, AEO Inc.’s Executive Chairman of the Board and Chief Executive Officer. “I believe AE77 is a great addition to our portfolio of brands as we seek to inspire new customers and expand our offerings.”

“We created AE77 to make the best premium denim in the market. The optimistic tension between denim design and sustainable craftsmanship is woven throughout the brand.  We are committed to putting our planet and quality first while curating a unique collection with a New York sensibility,” said Chad Kessler, President – AE Premium Brands.

About the AE77 Fall ’21 Collection

Artfully designed and planet-first.  AE77 denim is meant to be lived in, repaired, and recycled- paired with clothing, and accessories for an iconic wardrobe.

• Factories making AE77 denim meet AEO’s highest water requirements, exceeding requirements for water recycling, water management, and wastewater.
• Jean styles were made with a focus on lowering their environmental impact through more sustainable techniques and machinery.
• Exclusive use of Green Chemistry in jeans production to reduce or eliminate hazardous substances commonly used in the washing of denim.  
• Fabrics made from sustainable raw materials to all extents possible, including organic, recycled, or sustainably sourced through the Better Cotton Initiative.
• All cotton is sustainably sourced.
• Water reducing methods and designing with the most innovative, reinvented materials including organic, recycled, and Better Cotton Initiative fabrics.
• To further the commitment to the planet, AE77 will pledge 1% of annual sales to non-profit organization 1% For the Planet.
• Premium denim collection leads with nine fits and heroes the classic fit tailored for both men and women and the Western for women.
• Advanced fits are made with vintage details and innovative fabrics including selvedge are applied to provide maximum stretch and comfort. 
• Elevated dresses and tops with feminine touches of lace, pintuck, ruffles and pointelle pair back to the iconic denim.
• Timeless tops span across recycled cashmere, made in LA knits, Japanese flannel shirts, and vintage fleece. 
• The denim assortment ranges in price from $168-$188. Men’s bottoms sizing offered in 28-36 and women’s bottoms sizes offered in 23-33.

About the AE77 Fall ’21 Campaign

To introduce AE77, the brand worked with Trey Laird, Creative Director. The Fall ‘21 Campaign video and imagery capture a tension between New York and the new frontier. 

“I was so inspired to be involved in this project. To see such a huge company not only taking a bold leadership position in sustainable denim practices, but also having the vision to create an innovative new brand dedicated to the process is a rare thing to see.  We set out to visually capture the purity of nature fused with the energy of the City to reflect the story of AE77’s unique new blend of artful creativity & sustainable craft,” Trey Laird, Creative Director.

Address: 83 Spring Street, Ground Floor, New York, NY 10012

Hours: Mon-Sat 11-7, Sun 12-6

Phone Number: 518.531.9003

To experience a new breed of denim, follow @AE77denim on Instagram and shop the collection at AE77denim.com starting on October 15^th. 

About AE77

AE77 is an emerging premium brand in the AEO, Inc. portfolio offering a collection of artfully designed and sustainably crafted denim, apparel and accessories for men and women. We are committed to sustainable planet-first crafting and conscious manufacturing processes. Our dedication to building a better world goes beyond thoughtfully designed clothes and practices, it also includes making an annual donation of 1% of sales. For more information, please visit AE77denim.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, 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.

American Eagle Outfitters Reports All-time High Second Quarter Revenue and Operating Income Reflecting Strength Across Brands and Great Progress on our “Real Power. Real Growth.” Value Creation Plan

September 2, 2021

Second Quarter 2021 Highlights Compared to Second Quarter 2020

• Record revenue of $1.19 billion increased 35%
• Operating income reached an all-time second quarter high of $168 million
• Higher full-priced sales, reduced promotions and controlled costs fueled gross margin expansion to 42.1%
• Aerie net revenue increased 34%, operating income rose 132%, reflecting a 21.0% operating margin
• American Eagle net revenue rose 35%, operating income was up 234%, reflecting a 23.5% operating margin

PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the second quarter ended July 31, 2021.

“It’s extremely gratifying to see significant growth across our business, as we delivered another quarter of record revenue and profitability. Results underscore the strength of our brands, outstanding product and a leading customer experience across selling channels. We are running our business with a laser focus on profitability through inventory and real-estate optimization initiatives and investments to enhance our supply chain. Led by an expanding customer file, Aerie is achieving consistent, robust multi-year growth and very strong profit flow through. American Eagle posted meaningful top-and bottom-line increases with significant unlock still ahead.  Our Real Power. Real Growth. plan has been a guiding light for all facets of the business, positioning us to successfully navigate a dynamic macro environment. Despite external challenges, I believe we are on path to achieve $600 million in operating income this year, well ahead of our previous target,” said Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.”

Second Quarter 2021 Results

• Total net revenue increased $311 million, or 35% to $1.19 billion, compared to $0.88 billion in the second quarter of 2020.
• Aerie revenue of $336 million rose 34% from second quarter 2020 on top of 32% growth last year. American Eagle revenue of $846 million rose 35% versus second quarter 2020 following a 26% decline last year.
• Consolidated store revenue increased 73% from second quarter 2020 due to an improvement in store traffic. Total online demand this quarter was up 9%. Digital revenue decreased 5% from second quarter 2020 reflecting the natural channel shift associated with improved store traffic across the US. Last year, the abrupt acceleration in digital also created a significant fulfillment backlog that shifted sales from the first quarter into the second quarter in 2020. Compared to the pre-pandemic second quarter 2019 base, store revenue increased 4% and digital revenue increased 66%.
• Gross profit of $502 million rose 89% from $265 million in the second quarter of 2020.
• Gross margin of 42.1% expanded 1210 basis points from 30% in the second quarter of 2020. The increase from 2020 reflected significant revenue and merchandise margin expansion across brands, primarily driven by strong demand, higher full-priced sales, lower promotions and inventory optimization initiatives. Rent, digital delivery expenses and compensation also leveraged.
• Selling, general and administrative expense leveraged 70 basis points as a rate to sales versus second quarter 2020 due to strong revenue growth. On a dollar basis, SG&A increased due largely to the re-opening of our stores. We also saw increased advertising as well as incentive costs.
• Depreciation and amortization expense of $40 million compared to $39 million in the second quarter of 2020 and leveraged 100 basis points as a rate to sales due to strong revenue growth, asset impairments, as well as lower capital spending in 2020.
• Operating income of $168 million compared to an operating loss of $12 million in second quarter 2020, or operating income of $2 million on an adjusted basis. Aerie’s operating income of $71 million increased 132% from $30 million in the second quarter of 2020 and American Eagle’s operating income of $199 million increased 234% from $60 million in the second quarter of 2020.
• Operating margin of 14.1% reflected the highest rate since 2008. Aerie operating margin of 21.0% expanded 890 bps from 2020 and American Eagle’s operating margin of 23.5% expanded 1400 bps from 2020.
• Average diluted shares outstanding were 209 million compared to 166 million in the second quarter of 2020. The increase primarily reflected 36 million shares of unrealized dilution associated with the company’s convertible notes.
• EPS of $0.58 this quarter. Adjusted EPS of $0.60 this quarter excludes $0.02 of non-cash interest expense on the company’s convertible notes.

Inventory

Total consolidated ending inventory at cost increased $82 million or 20% to $504 million compared to a 21% decline last year. Inventory was up across both brands, positioned in key Fall categories, yet remained below revenue growth, which is consistent with our focus on inventory optimization.

Capital Expenditures

In the second quarter of 2021, capital expenditures totaled $49 million, and year to date totaled $86 million.  For fiscal 2021, the company now expects capital expenditures to be at the lower end of our prior guidance range of $250 to $275 million.

Cash Flow and Balance Sheet

The company ended the period with total cash and short-term investments of $824 million. This compares to $899 million in second quarter 2020 which included $200 million from AEO’s revolving credit facility, repaid in third quarter 2020.

Shareholder Returns

As previously announced, the Board of Directors of AEO approved a 31% increase in the quarterly dividend in June 2021 from $0.1375 to $0.18 per share. The company’s second quarter cash dividend of $30 million was paid during the quarter.

Conference Call and Supplemental Financial Information

Today, management will host a conference call and real time webcast at 9:00 a.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.

Non-GAAP Measures

This press release includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including consolidated adjusted operating income and earnings per share, excluding non-GAAP items. These financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (“GAAP”) and are not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.  Management believes that this non-GAAP information is useful for an alternate presentation of the company’s performance, when reviewed in conjunction with the company’s GAAP consolidated financial statements, as it helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude in such non-GAAP measures. Accordingly, we believe that adjusted operating income provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making.

These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company’s business and operations.  We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures.

* * * *

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 33 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 2021 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 30, 2021 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 2021 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.

CONTACT:     

Olivia Messina

412-432-3300

LineMedia@ae.com

The retailer continues to deliver on all cylinders, investing in logistics firm Airterra for faster delivery.

By: Kellie Ell | Link to article

Jay Schottenstein is facing pandemic shortages head on.

While other retailers are fretting over how to handle supply chain headwinds, including rising prices and lack of delivery services, the chairman and chief executive officer of American Eagle Outfitters had his own solution: transform the supply chain.

American Eagle Outfitters Inc. — parent company to the American Eagle, Aerie, Offline by Aerie, Todd Snyder and Unsubscribed brands — quietly acquired the logistics firm Airterra last month for an undisclosed amount in a move that will help the retailer leverage its network of stores and distribution centers to fill orders and offer same-day services.

“We built a world-class logistics team,” ​​Schottenstein, executive chairman and CEO of American Eagle Outfitters, told WWD in an exclusive interview. “We’ve always been a very innovative company. In the last few years, we made a lot of investments in our logistics area. We just acquired the Airterra company. And we were one of the first to build a major warehouse in Pennsylvania that could both deliver e-commerce sales to customers and could also deliver to the stores from the same facility.

“And then last year, when the pandemic started, we expanded [these facilities] and that gave us the ability in many markets to deliver same-day services to stores and to customers,” he continued. “So, we made investments in different areas — not just one area — to make sure we have the best of the best.”

In addition, the facilities, or regional distribution centers set up by the company, help AEO better manage inventory, while cutting costs. Schottenstein added that in the future, it won’t be just American Eagle Outfitters that will be using Airterra, “but we also have other clients there, too, other major retailers are part of it, too,” although he didn’t say which ones.

The acquisition of Airterra, which was founded by former Nordstrom chief supply chain officer Brent Beabout, marks a major development in the fashion world. It’s the first time a specialty retailer like American Eagle Outfitters will be able to compete with the big three mass-channel merchants — Amazon Inc., Walmart Inc. and Target Corp. (all of which already have their own last-mile delivery services in place) — in terms of same-day delivery.

“It’s kind of like Amazon,” Michael Rempell, executive vice president and chief operations officer of American Eagle Outfitters, told WWD in January, ahead of the company’s Investor Day, regarding AEO’s updated delivery system. “Amazon is constantly delivering stuff to you very quickly and usually from a location that’s very close to your home. That’s not really how fashion has traditionally been managed. And the reason is because fashion is less predictable.”

Consequently, apparel retailers normally have to hire delivery and transportation services along the supply chain to ship goods, while simultaneously navigating price hikes and inventory issues, often taking inventory out of stores to fill orders.

“And the cost of doing that, particularly of having many split shipments as a result of that, was getting very expensive,” Rempell said. “So we took a different stance this year. We decided to set up these regional hubs, pull inventory out of stores and keep it in the hubs, replenishing stores faster. And rather than shipping e-commerce from all of our stores, we were trying to concentrate more of the e-commerce coming from these regional hubs, rather than our main distribution centers in Pennsylvania and Kansas.”

Schottenstein added that even before the pandemic began, American Eagle had the foresight to prepare for supply chain headwinds.

“We know that the biggest question being asked today is, ‘how do we build up the supply chain?’” Schottenstein said. “So, we’ve been working on this for a long time. When it comes to COVID-19 [headwinds], I can go back to November of 2019, and we were on top of [managing the supply chain]. We knew what was going on with containers for the last several months. This is nothing new: the port delays, the container shortages.

“And what we’ve done, we’ve put a lot of the holiday orders [in place] early to get it rolling earlier,” he continued. “We feel that we’ll come out pretty good for the season. There are hiccups out there, but overall, we feel that we’re in pretty good shape. We’re anticipating a very strong third and fourth quarter. And despite everything going on out there, I think that the things that we’ve invested in — into our systems, into our logistics — we’re going to see the benefits coming through for the next couple of quarters and going into spring of next year, too.”

That explains why the company, which revealed quarterly earnings Thursday before the market opened, registered another stand-out quarter, improving on top-line revenues and logging a $121 million profit.

Aside from the investments in the supply chain, Schottenstein said growth drivers included fewer promotional sales, more full-priced selling, strategically placed brick-and-mortar stores, reduced rents, continued strength in Aerie and momentum in the AE business.

“It was strong across the board,” the chairman and CEO said. “Every retailer out there talks about it being a strong denim cycle. So, it shouldn’t be surprising that denim is still a major driver. But the legging business is also very strong and, overall, the business is strong on all cylinders for us, between the stores and online. And we also had a strong comps business, too.”

Broken down, total company revenues for the three-month period ending July 31 were $1.19 billion, up from $883 million during 2020’s second quarter. That’s an increase of $311 million, or 35 percent, year-over-year.

Innerwear and loungewear brand Aerie’s net revenues increased 34 percent — on top of 32 percent growth the same time last year — to nearly $336 million in the last three months, up from $251 million a year ago. In March, the company said Aerie had surpassed more than a billion in annual revenues and now has its sights set on the $2 billion mark.

Meanwhile, AE’s net revenue increased 35 percent to approximately $845 million during the quarter, up from nearly $625 million a year ago.

Total online demand was up 9 percent during the quarter, while digital revenues decreased 5 percent, year-over-year, as in-store traffic began to pick up, Schottenstein said. Compared with 2019’s pre-pandemic second quarter, in-store traffic was up 4 percent. Digital sales were up 66 percent during the most recent quarter, compared with 2019.

The retailer logged more than $121 million in profits as a result, compared with losses of $13.7 million a year ago.

AEO updated its outlook laid out to investors at the start of the year as a result, adjusting its previous goal of $550 million in operating income by 2023 to $600 million in operating income this year.

“And we’re being conservative on that, too,” Schottenstein said.

The retailer ended the quarter with approximately $774 million in cash and cash equivalents, roughly $332 million in long-term debt and nearly 1,100 stores across the portfolio.

Schottenstein said he sees big opportunity in Offline, with plans to open about 35 new stores this year, as well as in Todd Snyder, where he hopes to open about 10 new locations in major cities along the East Coast in the next 12 months, including one that will open in New York City’s Rockefeller Center in November. Slow retail brand Unsubscribed also has plans to open two new locations this fall.

“Today, to survive, it’s not enough to just have great merchandise,” Schottenstein said. “You have to have the ability to give the customer everything: You have to give the customer great customer service and you have to do it in a very efficient manner. Otherwise, you’ll be out of business.

“A few years ago we made a commitment to have the best app out there,” he continued. “We’ll be the first to introduce live retailing on our app. That’s just being introduced right now. So, there’s a lot of innovative stuff that we lead the way to do and we’re very proud of that. We’ve always been a company that’s embraced the right technologies and had the excitement and the experiences for the customers at the same time, too. And you really have to keep reinvesting in the business — whether it be systems, whether it be store designs, whether it be the merchandising team — to keep it fresh all the time. It never ends. It never ends in this business.”

The designer is opening a store in Rockefeller Center and has dropped a TSX Capsule of his greatest hits.

By: Jean E. Palmieri | Link to article

A background in retail and business, marketing savvy, a supportive deep-pocketed parent company and a design aesthetic that fills a gap in the American men’s market — that combination has helped Todd Snyder carve out a niche in the designer fashion world.

This year marks the 10th anniversary of Snyder’s label and while his business has grown substantially from the early days when he and a small team labored in a tiny office/showroom in Manhattan, his vision has remained the same: an all-American aesthetic infused with craftsmanship and an urban energy.

Now plans to further grow the business are in motion. Snyder has signed a lease for a fourth store in New York, at Rockefeller Center, which will open in November, with more on the horizon. He’s partnering with J. Press on a collection this fall, and is commemorating the anniversary with the TSX Capsule, an assortment of his greatest hits including the Dylan jacket, Japanese selvage chino and oxford, chore coat, pocket sweatshirt, cashmere cardigan and farm-to-yarn denim.

Over the past few years, the brand has averaged more than 50 percent year-over-year growth in its e-commerce channel and the retail stores are up in the double digits since the start of the health crisis, the company said.

Through it all, Snyder has remained grateful for what he has achieved and is quick to credit those who helped pave the way, including former Gap and J. Crew chief executive officer Mickey Drexler, American Eagle Outfitters’ chairman and CEO Jay Schottenstein, and designer Ralph Lauren.

Snyder believes that the 20 years he spent in the trenches — the Iowa native was a designer for Polo Ralph Lauren, the director of men’s wear for The Gap, and senior vice president of men’s for J. Crew before launching his brand in 2011 — was invaluable.

“To me, Ralph is the best American men’s wear designer. And working there was a huge goal for me,” he said. In addition, he said that by working at the retailers, he also was able to learn the “business piece” of fashion. “I attribute a lot of my success to working at The Gap and J. Crew but specifically working with Mickey Drexler because he understands the business so well. When I was with J. Crew, I got to see him every day. And you just see what it takes. And I realized that if I’m going to be good, I need to hire great people.”

So that’s what he did.

Snyder singled out chief product officer Alejandro Rhett; photographer Kenny Thomas; creative director Jim Moore; art director Phillip Gutman; writer John Brodie, and marketing director Tyler Thoreson as integral to helping him establish his vision and maintain his business.

When Snyder started, he went the traditional route, selling his collection to high-end retailers. He soon realized the advantages of going direct-to-consumer and made the switch exclusively to that channel three years after he launched.

“In our second year, we started our own e-commerce and we did $200,000. And I said, ‘Wow, this is bigger than any account we have.’ And that channel just kept growing and growing and growing. That’s when I knew I needed to focus on direct-to-consumer.”

In addition to his online presence, Snyder took the plunge into retail in 2016 when he opened a 5,000-square-foot flagship in the Madison Park district of Manhattan. He followed that with the Liquor Store location in TriBeCa in 2019, and a permanent shop in East Hampton this summer. The Liquor Store site on West Broadway was especially poignant for the designer since it was the site of the J. Crew men’s store that he transformed into a men’s wear must-visit destination during his tenure there.

Since launching his brand, the designer has partnered with a slew of other companies ranging from Champion and Timex to Red Wing and L.L. Bean. He said collaborations account for 20 percent of his overall sales.

“I first discovered collaborations when I was J. Crew,” he said. “That was a women’s-driven business and I needed to figure out how to get noticed.”

He approached Red Wing and Timex, which he called “iconic American brands,” and he brokered the deals. “It was a lot of work,” he said, “and I thought, if I’m going to work this hard, I should do this for myself.”

So when he left J. Crew, he already knew collaborations were going to be part of his business plan. And he turned his sights on Champion. “It took me two years to land them. But when I did, it really helped catapult my brand awareness. When I started, the industry knew who I was, but the customer didn’t.”

That led to partnerships with Timex, Footjoy, Jack Purcell, New Balance and others. The L.L. Bean collaboration that he unveiled during his last runway show in February 2020 marked the first time the 109-year-old company had ever partnered with another brand.

Champion continues to be his biggest collaboration, but L.L. Bean is now the second largest, he revealed. The others are “meant to be small, exclusive capsules that are limited edition, so we don’t have them all the time. They are really meant to sell out and be in short supply.”

It was the Champion partnership that caught the eye of Schottenstein of American Eagle. The head of the teen retailer had visited the pop-up shop Snyder had created with Champion called City Gym in NoLIta, and “fell in love with it,” he said. He contacted Chad Kessler, global brand president for American Eagle, and brought up the subject of buying the brand.

Not long after, the Pittsburgh-based retailer purchased the Todd Snyder company for $11 million in cash and stock. In addition to his namesake brand, Snyder quietly operated a college-campus retail concept called Tailgate that he had started with his father in 1991. While Tailgate may have been the main reason for the purchase, the Todd Snyder business was also seen as a major growth opportunity for the company. Tailgate gave American Eagle access to young, college students but Snyder was also named executive vice president of the parent company to provide fashion and trend input to the larger corporation.

“In the last six years, the Todd Snyder business has exceeded expectations,” Kessler said. “He is clearly a leading men’s designer and really understands the modern man. And there’s really no one else doing what he’s doing.”

In addition to the Tailgate business, having Snyder’s input at American Eagle has also “helped our men’s business overall,” Kessler said.

Kessler said that Snyder’s three retail stores are performing well and as a result, the company is “looking at further retail expansion. His strongest brand recognition is in the New York metropolitan area, but we hope to replicate that success in other areas.” Kessler said the plan is to “fill in in New York” and then look to add units in Chicago, Los Angeles, Washington, D.C., and other cities where the brand performs well.

He’s also got high hopes for the Rockefeller Center store, which he said will be “a great flagship. Jay [Schottenstein] is very eager to plant a flag on Fifth Avenue.”

Snyder said Schottenstein has told him that he envisions him as “the next great American designer,” and has green-lighted the opening of more stores. “He gave me the number of 10,” Snyder said. Opening stores also serves to create a halo for the digital business, which represents 85 percent of the brand’s overall sales.

There’s also a plan to expand outside the U.S. “Our goal is to expand domestically and then look internationally,” Snyder said. On the list is a return to Japan, as well as London. “Digital is really big for us and that will be key to building the brand in those markets.”

What isn’t likely to happen anytime soon is Snyder doing women’s wear. “We’ve been talking about it, but it won’t happen in the next year or two. Starting one thing is hard, but doing two is really hard.”

Instead, Snyder is planning a second L.L. Bean collaboration that is slated to come out next month and is looking into the men’s big and tall market. And he revealed that he’s partnering with J. Press on a collection that will come out in October that he described as “bad boy takes on preppy.”

He’ll also take the next few months to celebrate his anniversary. In addition to the TSX Capsule, which dropped Monday, he has created a catalogue with artist Ryan McMenamy who did illustrations of all Snyder’s signature pieces that will come out in October, and there are several limited-edition products intended to commemorate the milestone that have already been released or will drop through next year including Moscot eyewear, New Balance sneakers, Clarks desert boots, Birdwell swimwear and Rocky Mountain Featherbed outerwear.

Although there are other great men’s wear designers, he believes his aesthetic — and business model — are different enough to continue to carve out a niche. “When I started in the industry 30 years ago, there were these big personalities that drove the designer brands,”  he said. “And now it’s really more about the business model. It’s about connecting with customers who want to know more about you, more about the brand, more about where you make your clothes, what your ethos is. So I think that’s what’s changed quite a bit. You still have the Virgils [Ablohs]  — Virgil is now the new Calvin — but that’s high fashion. For the everyday customer, I think there’s definitely a void in the market.”

He continued: “I’m surrounded by a lot of great designers, whether it’s Thom Browne, or up-and-comers like Emily Bode. So I honestly don’t know where I’m going to be in 10 years, but I do think there are a lot more customers to be had out there. I think that’s the big reason why Jay was saying you need to go in and claim that role of being the great American men’s wear designer, and I like that as a goal. That’s definitely what we’re going to strive for.”