Skip to main content

American Eagle expands portfolio and profit


American Eagle Outfitters is adding brands to its portfolio that could diversify the company's reach and eventually lead to new store formats.

American Eagle has acquired Todd Snyder New York, an upscale menswear brand, and Snyder’s Tailgate Clothing Co., a vintage sports-inspired brand that operates a college-town store concept.

Todd Synder, founder and creative director of his eponymous company, will join American Eagle as executive VP, reporting to Chad Kessler, global brand president, American Eagle

Jimmy Olsson, Synder’s CEO and president, joins as VP and will continue to lead the day-to-day operations of Tailgate and Todd Snyder New York.

The purchase price was approximately $11 million paid in cash and stock.

“We are thrilled to add these unique brands to our portfolio, which provide exciting new business opportunities,” said Jay Schottenstein, interim CEO of American Eagle. “Todd and Jimmy bring exceptional creative talent and operational skills. They will continue to lead the business, as our organization remains focused on driving continued momentum and profit improvement. Capital investments in the Tailgate and Todd Snyder brands will be paced, with a test and scale approach based on profitability and return on investment.”

Todd Snyder joins with an extensive background in retail apparel. He launched the Tailgate brand in 1997, followed by his eponymous menswear collection in 2011. Prior to this, Todd spent more than two decades in retail apparel, including Designer for Polo Ralph Lauren, the director of menswear for the Gap, and senior VP of Menswear at J. Crew.

“Joining a leading American retailer is an exciting step for our brands and provides a strong foundation for future growth,” said Snyder. “Our new Tailgate store concept is an ideal outlet to integrate AE jeans and apparel, creating a unique lifestyle destination on college campuses. I look forward to contributing to AEO’s future success.”

In addition to the acquisition announcement, American Eagle also reported preliminary third quarter results. Same-store sales for the third quarter are expected to increase 9%. The company is raising its third quarter EPS expectation to approximately 34 cents per diluted share, representing growth of 55% from adjusted EPS of last year.

“In a highly challenging retail environment, we are extremely pleased to see our AE and Aerie brand customers respond positively to product and quality enhancements. We continue to experience greater full-priced selling and less promotional activity, resulting in profit margin expansion,” said Jay Schottenstein. “As we look ahead, we are optimistic about the upcoming holiday season and will continue executing customer-focused initiatives while delivering returns to shareholders.”

The company will report third quarter financial results on Dec. 2.

American Eagle Outfitters Inc. operates more than 1,000 stores in the United States, Canada, Mexico, China, Hong Kong and the United Kingdom, and ships to 81 countries worldwide through its websites.

This ad will auto-close in 10 seconds