I visited American Eagle's NYC concept store, which showcases lesser-known brands like Aerie, Offline, and AE77 jeans. Now I get why the company is drawing in teens and moms alike.
Jennifer Ortakales Dawkins
- American Eagle Outfitters appeals to generations of shoppers.
- AEO has expanded its portfolio but still has the capability to dress both teens and moms.
If there's one major clothing store that successfully caters to both daughters and their mothers, it's American Eagle.
I know this because as a 30-year-old I've purchased clothes from the brand over the years, as do my 60-year-old mom and 22-year-old sister. We'll compare notes about the jeans, sweaters, and loungewear. Sometimes we borrow pieces from one another's closets or hand off something we no longer love.
Most recently, I noticed my mom wearing a pair of green corduroy cargo pants from American Eagle, and she observed my faux leather cargos from the brand. I might not wear her pants, and she probably wouldn't wear mine, but we both appreciated how they looked on one another and proceeded to share about our shopping trips.
In this example, American Eagle took the cargo trend and applied it to two separate styles that could appeal to a wide range of ages and styles. My mom, sister, and I have different styles, but we could all walk out of the store with an armful of clothes we like.
In 2023, the American Eagle reached record Q3 revenue of $1.3 billion, up 5% compared to the same period in the prior year.
American Eagle is the second favorite apparel brand among teens, according to a semi-annual Piper Sandler survey conducted between August and September 2023.
I visited The Gateway in Soho, American Eagle's massive concept store that combines six of its brands under one roof.
I visited the American Eagle store in Soho.
The store is located at 599 Broadway in Manhattan's Soho neighborhood.
This location is called The Gateway.
This location previously housed just the American Eagle brand. The Gateway concept opened in November.
Six of AEO's brands are housed in The Gateway.
The Gateway is American Eagle's first store to combine six of its brands — American Eagle, Aerie, AE 24/7, Offline by Aerie, AE77, and Unsubscribed.
In the company's latest earnings call, CEO Jay Schottenstein mentioned The Gateway's initial success. "We are pleased with early results from new store designs, including our Gateway store in SoHo," Schottenstein told investors.
The front of the store started with the women's section.
From the main entrance starts American Eagle's women's clothing, which featured lots of trendy denim items like a maxi skirt and tube top.
I noticed both moms and what appeared to be their daughters shopping in the store.
I recognized old rock bands on stacks of T-shirts.
Youth culture isn't complete without band tees. In a nod to Gen Z's affinity for vintage, these harkened back to decades past with legendary rock bands like Nirvana, The Grateful Dead, and The Rolling Stones. But the graphics were given a modern twist of pastel colors that coordinated with a line of women's sweatshirts.
And then there were Squishmallows.
It might at first seem a little random for a clothing store to stock stuffed animals, but it actually makes a lot of sense, given the category's recent popularity.
The women's section stocked a variety of Squishmallows, the pillow-like plushies that Gen Z has obsessed over. They were positioned close to the registers so they could be an impulse add-on to someone's purchase, especially for gift-givers around the holidays.
The Aerie collection was at the back of the first floor.
Aerie is American Eagle's collection of bras, underwear, and loungewear for women ages 15 to 25, which launched in 2006.
In 2019, Aerie tapped into demand for wireless bras and began selling lace bralettes, a more comfortable, casual bra with minimal support. The product set Aerie apart at a time when more women were seeking comfort over sexy, push-up bras.
In 2014, Aerie launched "Aerie Real," a body-positivity campaign that used models of many sizes and unretouched photos. The marketing effort struck a chord with customers as the popularity of perfect supermodels began to wane. By 2020, Victoria's Secret's market share had tumbled, Forbes reported, and Aerie surpassed $1 billion in annual revenue.
Today, the brand still models its brightly colored underwear, soft fabrics, and matching sets on a range of body types, which is evident in the images and mannequins in its stores.
Aerie has been a major brand for AEO
In the third quarter of 2023, Aerie's revenue hit a record high. Both revenue and comparable sales increased by 12%. Since 2019, the brand has doubled its sales and quadrupled profits, AEO president Jennifer Foyle said in an earnings call.
"Aerie has seen incredible expansion over the last few years, growing into a beloved destination for exciting fashion and comfy, cozy fits in intimates, apparel, swimwear, and activewear," she said.
"We are gaining new customers every season, with our total customer file now over 10 million," she continued. "Yet, with just a low single-digit share of close to $80 billion total addressable market, we are just scratching the surface."
Downstairs, the vibe was totally different.
Downstairs housed AEO's Unsubscribed brand. The design and decor of the store became much more sophisticated and artsy, and it seemed to cater to an older demographic. Instead of the brights and pastels upstairs, the colors on this floor were more neutral and muted.
American Eagle Outfitters launched Unsubscribed in 2020 as a "slow retail brand." Intended to be the opposite of fast fashion, Unsubscribed makes high-end clothing that's meant to last, with washable silks and recycled cashmere.
While Unsubscribed isn't fully sustainable, it aims to lower its carbon footprint by producing new collections seasonally rather than monthly — a slower pace than most brands.
"By no means are we 100% sustainable," Foyle said in a press release. "But we have our eyes on that target."
This brand focuses on luxury pieces made from natural fibers.
The prices are also aimed at a more luxury consumer. There was a 100% silk slip dress priced at $298 and a $278 crewneck sweater made of 100% raccoon, according to the tag.
Instead of following the latest trends, most pieces are more timeless designs meant to be wardrobe investments. I could see how Unsubscribed caters to a woman in her late 20s and beyond who has a little more disposable income and is looking for sophisticated clothing for work or more elevated casual outfits.
The AE77 brand is marketed as premium, sustainable denim.
The other half of the bottom floor was devoted to AEO's AE77 brand, which produces its denim using organically grown cotton, recycled cotton waste, and partially recycled polyester.
The AE77 brand mostly carries basics like jeans and T-shirts.
Most of the styles were simple, but focused on quality instead of the latest trends. When I felt a women's T-shirt, it felt thick and durable.
Similar to the Unsubscribed brand, AE77 appears to cater to shoppers who want high quality basics that won't go out of style quickly.
The prices also skew higher than the main American Eagle brand. A pair of women's jeans from AE77 was priced at $128, compared to a starting price of $60 for a pair of women's jeans from American Eagle.
With a tote full of clothes, I made my way to the fitting rooms.
A store employee handed me a tote to carry all the pieces I picked out and directed me to the fitting rooms.
There were plenty of fitting 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 a T-shirt.
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.
I had to try on the raccoon sweater.
I've never seen a sweater made from raccoon, so I had to try it on. It was soft and very warm. I also tried a pair of trousers and I really liked the wide pant and overall fit. Overall, Unsubscribed's fabrics and designs felt high quality.
I could see how American Eagle is trying to cater to an older demographic outside of its main brand. These pieces lean more luxury in quality and price.
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.
The second I tried on the sherpa jacket, 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 headed to the second floor where the Offline collection was.
Offline is American Eagle's activewear collection for women, a sub-brand of Aerie. It includes all the basic gear like leggings, sports bras, and yoga pants as well as more everyday pieces like cargos and sweaters.
The athletic wear incorporates current fashion trends.
Since its conception in 2020, Offline has introduced a lot of workout styles that incorporate fashion trends. For example, I found pleather leggings and a faux leather bodysuit.
The men's section was also upstairs.
The rest of the second floor was devoted to American Eagle's 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.
The menswear had a rustic vibe.
One area in particular brought me back to the days when my entire family would shop at American Eagle during back-to-school season. The mannequins looked like they were ready for a day of hiking or fishing.
I purchased the henley, faux leather cargos, and sherpa jacket.
The Gateway was a good way to see how American Eagle Outfitters is positioning its brands. I knew very little about Unsuscribed and AE77 until my visit, and I could see how the company caters to several demographics.
Even though American Eagle's namesake brand clearly caters to teens and young 20-year-olds, many of its styles are approachable for older shoppers too. At the same time, its more luxury-leaning brands Unsubscribed and AE77 offer timeless styles for those who want to invest in higher quality pieces.
In the early 2000s, American Eagle could dress my mom, dad, sister, and brother with just one brand. Today, the company has expanded its offerings to dress a whole family while catering to shoppers with a wider range of interests and values.
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