Not so long ago, American Eagle Outfitters benefited from a seemingly close association to a hugely successful rival, positioning itself, consciously or not, as the poor man's Abercrombie & Fitch.
Today, well into a makeover that has started to reverse a long slump in same-store sales, American Eagle has developed its own identity, one far from the controversial image cultivated by A&F, observers said.
The repositioning comes at an opportune time for American Eagle, just as the once infallible A&F has seemingly fallen on hard times.
Among A&F's problems are declining sales at stores open at least a year, accusations of racial discrimination by ex-employees, and the furor caused by its risqué catalog, which last year appeared to endorse group sex and other lewd behavior.
On the fashion front, A&F is introducing a new line called Ezra Fitch that includes $148 jeans and $179 cashmere sweaters, prices that placed it out of reach for many young adults, analysts said.
By contrast, American Eagle has focused internally on revamping its merchandise and management team. A&F reshuffled top management and brought in a chief designer, who formerly fashioned looks for Gap Kids.
The company has streamlined its design process, reducing the number of "looks" each season to six from 10, which allows the retailer to better focus on a theme and point of view, said Adrienne Tennant, an analyst with Wedbush Morgan Securities.
Whereas A&F's Web site features steamy pictures of shirtless young men and scantily clad girls, American Eagle emphasizes outfits like a wrap camisole ($24.50) worn with a pink corduroy blazer ($58) and "hipster" jeans ($34.50).
"American Eagle has more of its own identity and looks more different from A&F than it has in the past," said Elizabeth Pierce, an analyst with Sanders Morris Harris.
"The United States eagle has a very attractive, but available market information, rather than an offensive one."
These changes seem to resonate with customers.
American eagle reverse three-quarters of the same - store sales fell by the first quarter of this year, when the 9.8 per cent rise announced.
Analysts expect the retailers unveiled another strong sales period, when it report second-quarter earnings today.
American eagle spokeswoman refused to comment on this story, citing quiet periods of authorization, the securities and exchange commission income retain announcements.
A&F, which also operates the lower-priced Hollister and abercrombie kids chains, said Tuesday that sales at stores open at least a year fell 5 percent in the second quarter.
A&F's CEO Mike Jefferies has said that he is not worried about creating an unattainable image that may alienate some customers, preferring instead to court only the "coolest" college kids.
Nevertheless, consumers like Michelle Pizurro, 18, who earns money babysitting near her home in Park Slope and is careful how she spends it, said that she window shops at A&F, but buys at American Eagle.
Pizurro, who recently bought a red-hooded sweatshirt at American Eagle, said she's turned off by the pictures of naked, skinny girls that plaster A&F's walls.
"I feel more comfortable at American Eagle," she said. "They're better at showing you the outfit - not the skinny girl."
"And," she added, "they're cheaper."
Today, well into a makeover that has started to reverse a long slump in same-store sales, American Eagle has developed its own identity, one far from the controversial image cultivated by A&F, observers said.
The repositioning comes at an opportune time for American Eagle, just as the once infallible A&F has seemingly fallen on hard times.
Among A&F's problems are declining sales at stores open at least a year, accusations of racial discrimination by ex-employees, and the furor caused by its risqué catalog, which last year appeared to endorse group sex and other lewd behavior.
On the fashion front, A&F is introducing a new line called Ezra Fitch that includes $148 jeans and $179 cashmere sweaters, prices that placed it out of reach for many young adults, analysts said.
By contrast, American Eagle has focused internally on revamping its merchandise and management team. A&F reshuffled top management and brought in a chief designer, who formerly fashioned looks for Gap Kids.
The company has streamlined its design process, reducing the number of "looks" each season to six from 10, which allows the retailer to better focus on a theme and point of view, said Adrienne Tennant, an analyst with Wedbush Morgan Securities.
Whereas A&F's Web site features steamy pictures of shirtless young men and scantily clad girls, American Eagle emphasizes outfits like a wrap camisole ($24.50) worn with a pink corduroy blazer ($58) and "hipster" jeans ($34.50).
"American Eagle has more of its own identity and looks more different from A&F than it has in the past," said Elizabeth Pierce, an analyst with Sanders Morris Harris.
"The United States eagle has a very attractive, but available market information, rather than an offensive one."
These changes seem to resonate with customers.
American eagle reverse three-quarters of the same - store sales fell by the first quarter of this year, when the 9.8 per cent rise announced.
Analysts expect the retailers unveiled another strong sales period, when it report second-quarter earnings today.
American eagle spokeswoman refused to comment on this story, citing quiet periods of authorization, the securities and exchange commission income retain announcements.
A&F, which also operates the lower-priced Hollister and abercrombie kids chains, said Tuesday that sales at stores open at least a year fell 5 percent in the second quarter.
A&F's CEO Mike Jefferies has said that he is not worried about creating an unattainable image that may alienate some customers, preferring instead to court only the "coolest" college kids.
Nevertheless, consumers like Michelle Pizurro, 18, who earns money babysitting near her home in Park Slope and is careful how she spends it, said that she window shops at A&F, but buys at American Eagle.
Pizurro, who recently bought a red-hooded sweatshirt at American Eagle, said she's turned off by the pictures of naked, skinny girls that plaster A&F's walls.
"I feel more comfortable at American Eagle," she said. "They're better at showing you the outfit - not the skinny girl."
"And," she added, "they're cheaper."
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