American Eagle is developing a new product concept for Spring 2023 after quietly discontinuing a premium experience earlier this year.
During an earnings call on Wednesday to discuss American Eagle Outfitters (AEO)’s disappointing second quarter with a net loss of $42.5 million, Jen Foyle, president and chief creative officer of its American Eagle brands ( AE) and Aerie, told analysts that she and her team will launch something new at AEO for the spring but have remained rather tight-lipped about what it will be. However, she hinted that it would be bottoms and bluntly stated that it would be casual wear.
“As for our new idea, I can’t tell you, but it’s very exciting. And it’s launching for spring 2023. And it’s a new concept for us, and I’m pretty excited. We’ve already had some first reads on some of the product categories. And very well received, very well received,” she said.
“I think the casual trend is here to stay. And certainly, our generation and generations to come love casual and comfortable sportswear, which I would like to say we do best. And when it comes to denim, there are definitely changes and we are certainly responding to them. We have been working on inventory,” she added. “There is definitely a shift towards other funds that we are starting to see. And certainly, we’re testing all silhouettes as we speak. AEO “has launched a brand new test and scale program” that will “make us even smarter or smarter, I should say, for the future,” she added.
“The things I see Jen and the team working on for the holiday season and Spring 23 look very exciting,” added AEO Executive Chairman and CEO Jay Schottenstein. “And also introducing new concepts to the brand, not just introducing more denim,” but introducing additional new types of fresh products would be very exciting, he said.
Foyle emphasized that any new items will not deviate from the comfortable, laid-back looks that are part of the AEO brand ethos. “I have to tell you, casual lifestyle clothing isn’t going away with our industry. I watch my daughter go to school every day in a sweatshirt and hoodie and she’s here to stay. And I think American Eagle and Aerie do better when it comes to casual and comfortable clothing, and that’s where we’re at, and that’s what we’re focusing on going forward,” he said. she declared.
“We have new ideas. Every day we have very new and exciting concepts that we are going to launch,” she added. “We stay focused, we stay in our lane and something I would say to our teams every day is just to stay in your lane, stay true to our brands and look to the future and make sure that we innovate and compete on our terms.”
One of the company’s newly born concepts is Unsubscribed, a slow-fashion women’s clothing brand that opened its first store in East Hampton, NY in the summer of 2020 and now has four more. AEO COO Michael Rempell said on the call that the company continues to “incubate” Unsubscribed, which is “doing very well.”