American Eagle CFO Says It's Not the Right Time for Aerie Spinoff

The video discusses American Eagle's belief in the importance of bricks and mortar stores for marketing and customer acquisition. The company is focused on Omni channel strategies and sees potential growth in both its AE and Aerie brands. While considering the possibility of Aerie becoming a standalone company, the current focus is on expanding product categories and international presence. The company is also evaluating its real estate portfolio, with flexibility in store locations, and plans to enhance digital personalization capabilities.

What is one of the main reasons American Eagle values brick-and-mortar stores?

• They are easier to manage than digital platforms.

• They require less staff than online operations.

• They serve as a primary form of advertising and customer acquisition.

• They are cheaper to maintain than online stores.

How does American Eagle view the current state of malls?

• Malls are thriving and expanding rapidly.

• Malls are struggling, especially with the departure of anchor stores.

• Malls are irrelevant to their business strategy.

• Malls are only important for luxury brands.

What percentage of American Eagle's store portfolio is in A or B grade malls?

• 90%

• 50%

• 30%

• 70%

What is a key growth opportunity for the AE brand?

• Reducing their digital presence.

• Focusing solely on denim products.

• Developing a significant accessories business.

• Expanding into the automotive industry.

What is the current international strategy for Aerie?

• Closing all international stores.

• Immediate expansion into Europe and Asia.

• Partnering with local brands in Asia.

• Focusing on establishing stronger brand recognition in the US first.