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. The purchase, which also includes Synder’s Tailgate line of collegiate-style tees and sweats, is another step by AEO away from “fast fashion” competitors and toward a more high-end brand.
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American Eagle Outfitters is adding brands to its portfolio that could diversify the company’s reach and eventually lead to new store formats. The company is increasingly aiming at higher-priced tastes, and cutting back on the huge sales and bargain pricing. Expansion is planned, and a standalone store (the brand’s first), is expected in New York at a few point in the future. The Creative Director and founder Todd Snyder will join the American Eagle as an Executive Vice President who will report to the Global Brand President. They will continue to lead the business, as our organisation remains focused on driving continued momentum and profit improvement.
At the Tailgate Clothing company in Iowa City, there is likely something for everyone.
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As American Eagle works on continuing business in an increasingly competitive retail environment, the Todd Snyder and Tailgate acquisition looks like it will prove to be a profitable business move. Todd Snyder New York is offered in select department stores and boutiques, as well as online at ToddSnyder.com. The previous earnings per share guidance range was $0.28 to $0.31. American Eagle Outfitters, Inc. shares are now trading up about 7.3% on the day. The retailer plans to provide full third-quarter results on December 2. American Eagle already had gained 9.9 percent this year through Monday. This little niche store really caught American Eagle’s attention. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on factors beyond the company’s control.
