American Eagle has posted awesome results since new CEO Robert Hansen took over.
Even as its main competitors, Aeropostale and Abercrombie & Fitch, struggled through back-to-school season, American Eagle dominated.
The future looks bright for the retailer, according to Dorothy Lakner, an analyst at Caris & Co. The reason why American Eagle is doing so well in comparison to its competitors is obvious.
American Eagle has the best product.
While Abercrombie and Aeropostale stuck to their old, preppy designs, American Eagle has made an effort to differentiate its product, Lakner explains.
She took a trip to the mall and made some observations:
We know that AEO has a strong denim franchise and looks good in terms of its colored offering, but also for its differentiated printed jeans. As we await what we hope should be a more normal winter this year, we think AE’s sweaters are very differentiated—different fibers and knits and cool designs. This past weekend we also thought new handbags were an improvement over past efforts. And the clearance room in the back of the store was nicely cleared out.
While sales can be affected by economic factors, American Eagle is a good example that product is king.