I compared American Eagle and Abercrombie and found 2 millennial brands remaking themselves for Gen Z in very different ways
Jennifer Ortakales Dawkins
- American Eagle Outfitters and Abercrombie & Fitch used to be considered millennial brands.
- Today, both retailers have found success with Gen Z shoppers.
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.
First, I visited American Eagle.
The store is located at 599 Broadway in Manhattan's Soho neighborhood. This location is called The Gateway, a multilevel store that houses all of the AEO brands. I focused on the American Eagle brand for this story.
Women's clothing was at the front of the store.
American Eagle's women's clothing began at the front entrance, featuring many trendy denim items like maxi skirts and tube tops.
The styles were youthful and trendy.
While American Eagle certainly carries pieces that are appropriate for many ages, the focus seems to be on styles geared to teens.
There were several markdowns.
I went shopping at the height of the holiday season and saw an emphasis on soft and cozy materials and a lot of promotions. Some sweaters were 30% off. A pair of faux leather cargo pants was 50% off.
I spotted a 'bear hug' sherpa jacket.
In keeping with that theme of soft layers, there was a "bear hug" sherpa jacket available in several bright and pastel colors. I really liked the one that came in a green and baby blue pattern, so I picked it up to try it on. The jackets were also 40% off.
The women's denim took up an entire section of the store.
American Eagle carries a variety of denim styles and washes. Keeping with the Gen Z focus, there were a lot of wide-legs, flares, and bell-bottoms. While American Eagle does carry skinny jeans, they weren't positioned as prominently.
The men's section was upstairs.
Half of the second floor was devoted to American' Eagle's activewear for women, while the other half was devoted to the men's clothing.
Of all the brands under the AEO umbrella, the men's clothing seemed the least touched since the early aughts. While the styles have been updated for today's trends, there were still lots of plaid shirts, graphic tees, and cargos.
I made my way to the fitting rooms on the bottom level of the store.
After checking out a couple of other brands on the bottom floor, I went to the fitting rooms. There were plenty of rooms, and they were all empty, probably because most shoppers were on the upper levels of the store.
I tried a pair of AE77 jeans and T-shirt.
I tried on a pair of jeans from American Eagle's AE77 collection, which the company markets as premium, sustainable denim.
I liked the look of the stovepipe style, but they were a little big. I tried on a size 4 because they didn't have the 2 in stock.
The cropped crewneck T-shirt was a nice quality and 100% cotton.
Next, I tried on the faux leather cargos and a henley top.
The cargos were fun and comfortable. They were a flattering fit — not too baggy or too slim. The henley was soft, and I could see it being a good layer underneath my sweaters this winter.
I loved the sherpa fleece jacket.
I tried on the sherpa jacket on top of the previous outfit. The second I put it on, I knew I had to get it. As the marketing promised, it felt like hugging a giant plushie. It was warm enough to wear as outerwear on its own or layered underneath a bigger coat. I immediately pictured myself wearing it on my flight home for the holidays.
The jacket is made from 100% recycled polyester. I noticed that many of American Eagle's clothes are made with recycled materials, undoubtedly another approach to appeal to environmentally-conscious Gen Z customers who like to buy lots of things, but also want to be sustainable.
I bought the entire second outfit.
Earlier this year, I vowed to stop buying new clothes to save my wallet and space in my closet. But alas, I loved the second outfit too much to resist. I'd had a similar fleece jacket saved to my Pinterest, and I'd been wanting to replace a pair of faux leather pants, so I told myself it was meant to be.
Next, I visited Abercrombie & Fitch.
I walked down a couple blocks to Abercrombie's Soho store at 547 Broadway. Abercrombie's Fifth Avenue flagship is a better comparison to American Eagle's Gateway store. However, I chose this Abercrombie store, which is much smaller, for the sake of proximity and focused on how the clothing, marketing, and target customer compared.
Women's clothing was at the front of the store.
The store seemed busy. I walked in at the same time as a group of 20-year olds who sounded smitten with Abercrombie's sweaters.
Abercrombie's popular Sloane pant was front and center.
Trousers have diversified Abercrombie's pant sales into categories outside of denim.
In an earnings call, CEO Fran Horowitz told investors that while denim continues to be an important part of the business, the company has seen strong conversion in non-denim pants.
"We are really focused on the fact that bottoms are much more than denim today," she said.
Abercrombie also had several markdowns.
Sweaters were 30% off, and some pants were marked down by 50%.
One wall featured eveningwear and party dresses
One way Abercrombie sets itself apart from American Eagle is its selection of more formal clothing like trousers for the office and special occasion dresses.
Some of the outerwear was designed with eco-conscious customers in mind.
One jacket was labeled as vegan leather, while another had interior tags touting its recycled insulation.
The store was very long and narrow.
This particular store felt cramped due to the long, narrow format. Athletic clothing like leggings and sports bras were hidden behind stacks of sweaters.
Denim was prominently featured in the middle of the store.
Gone are the days of Abercrombie's heavily ripped denim. There are a few distressed styles, but most of the jeans are without holes.
The men's section was all the way at the back of the store.
You have to walk past the fitting rooms through a narrow hallway to get to the men's section. It felt like the men's clothing had been an afterthought when they laid out the floor plan.
I waited in line for the fitting rooms.
There were only four fitting rooms, which didn't make sense for how busy the store was. I waited behind five people for about eight minutes.
First, I tried on a pair of faux leather pants and a half-zip sweater.
I really liked the sweater and was surprised the XS fit me perfectly because I'm normally a small in Abercrombie's clothes. The leather pants were cute, but I didn't like the cropped leg.
Then, I tried a knit bodysuit and a pair of cargo trousers.
The bodysuit fit nicely and I liked the look, but the material was thin. I really liked the pants — they were an office-appropriate twist on the very trendy cargo.
I wasn't sold on any of the pieces I tried, but I made a mental note of the sweater and cargos for a later shopping trip.
I could see how American Eagle has maintained its appeal for teens.
American Eagle has certainly freshened up its selection since its mall days but has kept a hold on young consumers with bright colors, soft fabrics, and styles that are trendy but not overtly fashionable. The brand takes all the viral looks from TikTok and pairs them down into approachable pieces for the everyday teen.
Yet, the brand still carries all the markers of classic American teen style: graphic tees, flannel shirts, preppy stripes, and lots — and lots — of denim.
Meanwhile, Abercrombie has captured the 20-somethings.
Both brands have been successful appealing to Gen Z, but it was clear they've differentiated themselves to serve slightly different demographics.
If American Eagle is a younger, middle-America teen, Abercrombie is like the older, sophisticated sister who goes to school in the city and wears a lot of black. Most of the customers I saw shopping in Abercrombie were college-age, dressed like Soho influencers in baggy jeans and leather jackets. Even the teens I saw in the store had a darker, grungier style.
Abercrombie appeals to this demographic by doubling down on logo-free basics, office-appropriate trousers, and coastal grandmother sweaters. Nearly every piece can be dressed up or down for multiple occasions, making it a shopping destination for 20- and 30-somethings in need of a stylish, yet functional, wardrobe.
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