Careers at American Eagle Outfitters
American Eagle Outfitters Inc (“American Eagle”) aims to provide a range of high quality, on-trend, comfortable, and durable apparel and accessories, as well as personal care products, at affordable prices.
American Eagle traces its roots back to 1977, when the first American Eagle store opened in Twelve Oaks Mall in Novi, Michigan.
The store was launched by members of the Silverman family, who had previously owned and operated Silvermans Menswear.
Both Silvermans Menswear and American Eagle became part of Retail Ventures Inc in 1980. The Company was acquired by Schottenstein Stores Inc in 1990, following which American Eagle began developing private label products.
Schottenstein Stores expanded the American Eagle chain throughout the 1980s, opening a number stores in shopping malls across the US. In 1989, the owners decided to focus the company’s operations on the American Eagle brand and sold its other retail chains.
By this time, there were 137 American Eagle stores in 36 different states. American Eagle went public in 1994, completing an initial public offering on the NASDAQ of 2.3 million shares. The Company began trading under the ticker symbol AEOS.
American Eagle has continued to grow its operations, expanding into a number of international markets and launching an online store for its American Eagle and Aerie brands.
The Company currently operates a network of close to 1,000 physical retail outlets across markets in the Americas, Asia Pacific, and Europe. American Eagle has a current market capitalisation of around USD 3 billion.
Business model of American Eagle Outfitters
American Eagle offers apparel and accessories for the general consumer population.
The Company’s core customers fall into one or more the following segments:
- Younger Consumers, comprising consumers typically aged between 15 and 25, with a significant consumer base who are high school or college students;
- Wealthier Consumers, comprising consumers from middle to higher income families with household incomes of USD 50,000 to in excess of USD 100,000; and
- Fashion Conscious Consumers, comprising consumers who are aware of current fashion trends and enjoy spending disposable income on apparel and accessories.
American Eagle serves both men and women. It customers are also predominantly Caucasian.
American Eagle is headquartered in the US, which is the Company’s core market. The Company also serves an international customer base across markets in North America, Asia Pacific, and Europe.
American Eagle provides value to its customers in the following ways:
- Brand Strength and Reputation – American Eagle and its Aerie line are among the most popular and recognisable clothing brands in the US, notably among its core demographic, and the Company has an established reputation as a manufacturer of high quality goods;
- Design and Quality – American Eagle designs and develops its own clothing items that follow current and emerging fashion trends around the world, and manufactures high quality and long lasting products;
- Product Range – American Eagle offers a wide range of products to suit the needs of its customers – including tops, jeans, t-shirts, swimwear, and lingerie – for both men and women;
- Accessibility and Reach – American Eagle operates an extensive network of retail outlets under its flagship American Eagle brand and its Aerie brand across the Americas, Europe, Asia Pacific, and the Middle East, as well as via its online store, ensuring that it is able to reach a large customer base; and
- Customer Service – American Eagle seeks to provide high quality customer service across its network of stores.
American Eagle has an omni-channel sales network. The Company serves its customers directly via its network of physical retail outlets, as well as online through its own ecommerce portal.
The Company operates a network of around 1,000 brick and mortar stores in the US and internationally, this includes 934 American Eagle stores and 115 stand-alone stores under the Company’s Aerie brand.
The Company additionally has license agreements with third-parties to operate American Eagle and Aerie stores throughout Asia, Europe, India, Latin America and the Middle East. Its licensed store base numbers 231 locations in 24 countries.
American Eagle also operates two emerging brands: Tailgate, a vintage, sports-inspired apparel brand, and Todd Snyder New York, a premium menswear brand.
American Eagle’s retail stores are typically located in shopping malls, lifestyle centres, and street locations. American Eagle utilises the services of third parties for its manufacturing operations.
American Eagle serves its customers directly in-store, and on a self-service basis through its online shop. The Company’s stores are staffed by sales personnel who seek to provide tailored customer service to customers.
The Company’s in-store personnel also deal directly with customer requests, queries, complaints, and product returns.
In addition to hosting an online store on its website, American Eagle also uses its website to provide customers with information on its store locations, its products, its returns policy, and shipping options.
The Company’s website includes an order tracking service and a store-finding service, which gives customers further flexibility and control in their shopping experience. Customers can access their own accounts via the American Eagle website at www.ae.com, through which they can manage their details and save orders.
American Eagle maintains an extensive social media presence, operating a number of accounts – including with Facebook, Twitter, Pinterest, Instagram, LinkedIn, and YouTube – through which it is able to communicate deals and updates to its customers directly and handle customer feedback.
The Company also publishes a blog on its website, through which it provides information on company developments.
American Eagle is a multi-brand specialty retailer of fashion items. The Company offers a range of apparel and accessories for men and women under the American Eagle, as well as intimates, apparel and personal care products for women under the Aerie brand.
The Company’s other brands include sports-inspired brand Tailgate and menswear brand Todd Snyder New York.
American Eagle operates a network of around 1,000 physical retail locations across the Americas, Asia Pacific, Europe, and the Middle East, including in the US, Canada, Mexico, Hong Kong, China and the UK.
In addition to its physical locations, American Eagle operates an online store, through which customers across international markets can purchase products.
American Eagle works closely with a network of partners that support its core retail and design operations.
These partners can be organised broadly into the following categories:
- Supplier and Vendor Partners, comprising suppliers of materials and equipment used in the Company core design and retail operations, as well as third party providers of services that support the Company’s corporate activities more broadly;
- Content Management and Technology Partners, comprising a range of ecommerce and content management providers that support the Company’s website design and digital retail operations;
- Sales and Distribution Partners, comprising a range of third party logistics companies that support the Company’s distribution and delivery operations, as well as a network of third party licensed retailers of American Eagle products;
- Manufacturing Partners, comprising third party factory operators and manufacturing companies that produce the Company’s merchandise using the Company’s proprietary designs;
- Social and Community Partners, comprising a range of non-profits and charitable organisations with which the Company collaborates on community and social projects, primarily in the US; and
- Strategic Partners, various other commercial enterprises and brands with which the Company collaborates on brand development, marketing, and other strategic projects.
American Eagle has a number of partnerships in place. Its ecommerce partners notably include Hubspot, Adobe, WordPress, Shopify, Salesforce, and ROC Commerce.
The success of American Eagle’s business model depends on its ability to provide customers with on-trend fashion items reliably and efficiently.
As such, the Company’s key resources are its brands and intellectual properties – notably the ‘American Eagle and ‘Aerie’ names, its network of retail outlets, its suppliers and supply chain infrastructure, its online store and IT infrastructure, its partnerships – notably its manufacturing and distribution partners, and its personnel.
The Company’s network of around 1,000 physical outlets and its online store are notably essential to the Company’s operations.
American Eagle incurs costs in relation to the operation of its store network – including occupancy and utility costs, the procurement of materials and equipment, the procurement of third party manufacturing and distribution services, the operation and maintenance of its online store, the development and maintenance of its IT and communications infrastructure, the development and implementation of marketing and branding campaigns, the management of its partnerships, and the payment of salaries and benefits to its workforce.
In 2019, American Eagle recorded total cost of sales in the amount of USD 2.55 billion, and selling, general and administrative expenses in the amount of USD 980.61 million.
American Eagle generates revenue via the sale of clothing products and accessories across its network of physical retail locations, as well as through its online sales channel.
The Company derives the bulk of its revenue in the form of sales fees collected directly from customers at point of sale, both online and at its physical retail outlets.
In 2019, American Eagle recorded total net revenue of USD 4.04 billion, up on the USD 3.80 billion recorded by the company in 2018.
info: Jay L. Schottenstein (“Schottenstein”) has served as Chief Executive Officer at American Eagle since 2014. He is responsible for leading the Company’s board of director and for implementing the Company’s overall business and growth strategies. He has been the Company’s Chairman continuously since 1992, and was also the Company’s Chief Executive Officer from 1992 to 2002. Schottenstein is also a major shareholder of American Eagle. Schottenstein left American Eagle’s executive team in 2005 to join footwear company DSW Inc as Chief Executive Officer. He stepped down from this role in 2014 to return to American Eagle. He, however, continues to serve as Chairman of DSW Inc. In addition to his role at American Eagle, Schottenstein serves as Jay also serves as Chairman of the Board and Chief Executive Officer of Schottenstein Stores Corporation.
info: Robert L. Madore (“Madore”) has served as Executive Vice President and Chief Financial Officer at American Eagle since joining the Company in 2016. In this role, he is responsible for leading all of the Company’s financial management operations, including reporting, accounting, investor relations, financial planning and analysis, internal audit, and tax. Madore has held a number of senior executive positions within the fashion industry. He notably served as Chief Operating Officer and Chief Financial Officer of FutureBrand, a division of McCann Erickson, following which he served as Chief Financial Officer for New York and Company. Prior to joining American Eagle, Madore held roles of increasing responsibility at Ralph Lauren Corporation, including spells as Senior Vice President of Corporate Finance, Senior Vice President of Operations and Chief Financial Officer of its retail segment, and Chief Financial Officer.
info: Michael R. Rempell (“Rempell”) has served as Executive Vice President and Chief Operations Officer since 2012. In this role, he is responsible for leading the Company’s global operations on a day-to-day basis. Rempell began his career in 1995 as a consultant at Accenture. In 1997, he joined PricewaterhouseCoopers in the same position, and in 1999 began working for American Eagle in a consulting role. He joined the Company in an official capacity in 2000 as Senior Director of American Eagle Direct. He has gone on to hold roles of increasing responsibility at the Company, including spells as Vice President of Supply Chain, Chief Information Officer, Chief Supply Chain Officer, and Chief Operating Officer of the New York Design Centre.
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