When the back-to-school season rolls around in the upcoming months, Abercrombie & Fitch Co. and American Eagle Outfitters Inc. will need to have denim alternatives. Both companies have been attempting to increase the variety of clothing they sell as of late. Each of them is in a different stage in their lifestyle journey. Furthermore, denim still plays a significant part in the selection mix at both American Eagle and Abercrombie, even if the former is further forward on its lifestyle cycle.
The Abercrombie & Fitch Company “We are seeing some new trends happening, which is exciting,” Abercrombie CEO Fran Horowitz said on a conference call with investors on Wednesday following the release of the company’s first-quarter financial results. The surge is really beginning to decline slightly. Thus, this low-rise baggy is making a big impression. Regarding the fashions at the retailer’s main Abercrombie brand, which caters to young people in their 20s to 40s, she stated that wide-leg jeans are trendy.
However, over the past few years, the specialized retailer has also been experimenting, expanding its product mix to better balance as a legitimate lifestyle brand. Additionally, the company’s client base has grown as a result of this shift.
The Wedding Shop, a carefully chosen selection of gowns and other clothing for clients looking for solutions for anything from bachelorette parties to honeymoons to the big day itself, was introduced by the specialized retailer in the first quarter that concluded on May 4. Our best dressed guest collection, which has been a part of the range for a few years, is a successful extension of the Wedding Shop, according to Horowitz.
Both the women’s and men’s divisions of the company’s troubled adolescent brand Hollister made improvements in 2018. The men’s section started to develop again, with fleece shirts, bottoms, and jeans doing particularly well during the course of the quarter. Horowitz stated that women’s contributions to the growth acceleration with balance across categories have been rather good. According to her, the men’s market recovered more quickly than anticipated thanks to a significant uptick in the tops sector. Over the last several quarters, the bottoms company has had tremendous success; yet, a new trend has also caused the tops to receive less attention.
“I’m excited to see that guys are changing and growing in proportion.” According to Horowitz, “They’re wearing these baggier jeans with looser tops and different proportions.”
Eagle in America Although it still primarily sells denim, American Eagle is expanding its product line under its main American Eagle banner. The company also runs the Aerie intimates brand. According to Jennifer M. Foyle, president and executive creative director of American Eagle and Aerie, the company is receiving “positive customer response as we look to capture the social casual dressing occasion and a wider age demo.”
It was time to restore the lifestyle that our customers were requesting from us, she said, adding that the business was “very single noted.” And those outcomes—wow, they’ve exceeded expectations. We will thus keep growing in those adjacent areas. Women’s tops were a major growth driver for the first quarter that concluded on May 4, supported by strong sales of dresses, skirts, and jeans. She stated that men’s fashion showed success in coats, knit shirts, slacks, and sweaters, and that “we are seeing nice momentum in AE 24/7, our men’s activewear collection.”
During the quarter, the business raised visibility of their spring denim line on social media by utilizing influencers and organic content to capitalize on the Western trend. The revamp of the brand platform, which honors AE’s legacy of self-expression, unique flair, inclusivity, and, of course, optimism, is something Foyle is looking forward to as return to school draws near.
According to her, casual attire continues to be a staple in American Eagle consumers’ wardrobes, which naturally boosts the company’s sales. “We still own the denim market. There should be tailwinds there, in my opinion. The assortments are fantastic for back-to-school and beyond, and we’re seeing early trends, especially in women’s wear,” she continued. According to her, more new fits will be added to the denim possibilities for the third quarter in order to support the assortments: “I believe that we are about to enter a cycle, which is undoubtedly a winning area for us. We lead with this category. We’re in control of it.
Furthermore, she noted that although the company would always provide products to cater to its core clientele, the expansion of its selection is a result of its emphasis on encouraging those consumers to “stay with us.” And going back to our original plan, we wish to provide social casual, men’s active, daily casual, new occasions, and core occasions. Despite being known as a teen brand, Foyle said that data indicates that consumers are sticking with the company because “we’re actually seeing the next bracket of the age group actually increase slightly,” a change from previous years when they would have left the company at a later age. Denim is the staple category at American Eagle that never goes out of style.
“Denim is timeless; it is our primary business area. And since we were previously so focused on only one fit, especially in women’s wear, we are gaining customers—new customers—as we provide new fits, said Foyle. “I believe that since we’ve expanded that selection, we’re attracting an increasing number of clients.Therefore, I’m glad that this category may have some tailwinds.
