Despite a difficult retail environment, American Eagle Outfitters CEO Jay Schottenstein is confident where his company is currently and, more importantly, where it is headed. The company has been able to incur brand loyalty amid a not so forgiving macro environment.
Schottenstein voiced his delight with the company’s first-quarter performance during a May 18 earnings call.
“Within the context of a very tough retail environment, I am especially pleased with our results,” he said, according to Seeking Alpha. “We demonstrated momentum across our business, gaining market share with leading performance. In the quarter, comparable sales increased 6% and operating income rose 40%. Our first-quarter results would not be possible without great merchandise, strategic investments, and strong execution across the organization.”
Ecommerce was exceptionally strong, Schottenstein noted, as digital marketing efforts have delivered solid returns.
“We also posted positive store comps to both brands on outpaced mall traffic,” he said. “Our progress over the past two years has made AEO a much stronger operator in a tough, macro environment. While weak mall traffic continues and other brands had struggled, we are taking share. We remain highly focused on leveraging our competitive advantages and positioning AEO for future success. Product leadership and customer acquisition remain top priorities in 2016.”
What’s more, Schottenstein applauded his world class creative team that continues to raise the bar.
“They now have to consistently deliver compelling and differentiated fashion, building around our leading product lines such as denim,” he said. “The fall American Eagle is unveiling a new marketing campaign that will alleviate and re-energize the brand. Technology investments have made us better, faster, and more efficient. These investments have also been key to our recent success. In the first quarter, we drove nearly $30 million of revenue through ship-from-store and expect flexible fulfillment to generate ongoing benefits to our business.”
Schottenstein noted two new hires that will help propel the brand forward.
Peter Horvath recently joined as chief global commercial and administrative officer, bringing an extensive track record of success in the retail industry. Also, American Eagle Outfitters hired Kyle Andrew as its new Chief Marketing Officer.
“I believe our brightest moments are still ahead and we are just beginning to unlock the potential of our business,” Schottenstein said. “We know the AE branch is broader and can successfully compete on the global stage. Aerie has a long runway ahead and I believe this is one of the most exciting and emerging brands in retail today.”