Gen Z has a way of making millennial fashions cool again, often causing chagrin or amusement to millennials like me.
It should come as no surprise that Gen Z helped revive two major apparel brands that millennials fervently shopped at as teens — back when the mall was the best place on earth.
American Eagle Outfitters and Abercrombie & Fitch have seemingly hit the lottery with young shoppers. Along with Uggs and Coach, brands that rose in the early aughts have gained a new customer base thanks to smart marketing and a little nostalgia.
After struggling with declining sales, American Eagle was the first of the two brands to turn itself around, with more inclusive marketing to regain the teen market and fewer logos on its merchandise. In 2018, comparable sales were up 5% for its namesake brand. American Eagle also owns brands like Aerie and purchased menswear brand Todd Synder in 2015.
In 2022, American Eagle reported $5 billion in annual net revenue. This year, the company reached record Q3 revenue of $1.3 billion, up 5% compared to last year.
Abercrombie began plotting its comeback once former CEO Mike Jeffries resigned from his post in 2014 and took Abercrombie's exclusive, sexualized, and super-preppy image with him. After Fran Horowitz took over as CEO in 2017, the company's sales began to improve.
In 2022, the company reported $3.7 billion in annual net sales. That year, Horowitz introduced an "Always Forward Plan," which outlined how the company would achieve annual revenue of more than $4 billion by 2025.
Abercrombie's stock was up more than 285% in 2023, surpassing Nvidia's massive gains, Bloomberg reported. The brand has come a long way, appealing to a slightly older customer base of 20- and 30-year-olds instead of just teens.
"We are no longer a jeans and T-shirt brand," Horowitz told investors in a recent earnings call.
I visited both stores to compare the two. I wondered how they've successfully captured Gen Z customers and set themselves apart.