Will American Eagle Be The Next J.Crew?

american-eaglePhoto: Courtesy of American Eagle.
It's possible you haven't regularly shopped at American Eagle since your main source of income was babysitting money. But, now, it might actually be time to revisit the retailer, albeit for different reasons. Steve Forbes (yep, of Forbes) picked American Eagle as a safe stock investment for 2014.
Advertisement
Alongside household tech brands like Apple, Cisco, Microsoft, and IBM, American Eagle is kind of a left-field venture for those who typically don't see teen retailers as sure bets. For example, financial-service company The Motley Fool pinpointed Aeropostale and Abercrombie & Fitch as retailers that haven't been able to compete with the Urban Outfitters and H&Ms of the world. But, with Forbes' endorsement, it seems like American Eagle's "fantastic balance sheet, no debt, $2 per share in cash, [and] 3.5% dividend yield" will set it beyond the pack.
What does that signify for the company itself? Heritage wear is becoming more and more ubiquitous, which means American Eagle is poised to become a go-to brand for high-street shops, in much the same way J.Crew capitalized on the quirky-prep vibe of recent seasons. With fairly solid construction, affordable price points, and a trend-less vibe that's ironically becoming more in vogue right now (and let's not forget that it's a location in most malls across the U.S.), American Eagle might become the next mass retailer to see a renaissance. Just take a look at its wares: Isabel Marant-ish sherpa hoodies for $49.95, slouchy boyfriend jeans for $44.95, and resort wear that looks as sophisticated as something you'd find for 10 times the price. Plus, with a slew of seasonal discounts (like the 50%-off-everything sale right now), there's a ton of ongoing incentives to really load up. At the rate things are going, we might end up seeing you at the mall more in 2014! (Forbes)
Advertisement

More from Designers

Just two months ago, Dior announced (finally) that Maria Grazia Chiuri, the former co-creative director at Valentino, would succeed Raf Simons as ...
Anything Rihanna touches will be surrounded with buzz. It's true of her constantly sold-out Puma shoes, and it's also applicable to the runway component of...
On Tuesday evening, there was no escaping the huge neon letters — Y, S, L — suspended from a blue, white, and red crane, as the audience arrived for ...
Sewing, cutting, draping, steaming — though you might not know how to do these things yourself, you’d recognize most of the processes of creating an ...
This story was originally published on September 2, 2016. When we first spot a new item, our gut reaction is to connect it to a past decade's aesthetic: "...
There are currently plenty of brands touting custom embroidered or printed garb. But for Dresshirt, the personalization factor has been part of the ...
Though it's hard to imagine a time when more people read magazines than read articles on their phones, bloggers were still making pennies off banner ads (...
(Paid Content) Last week, Thakoon left convention behind when he presented his new collection at a scenic waterfront setting in Brooklyn, perfectly timed ...
Carlton Banks, your moment as a fashion icon has come. On Wednesday, Miuccia Prada showed a collection that, at first glance, might not immediately remind ...
While other luxury heritage brands are sticking to what they know (meaning the dated, one-season-out showing), Burberry is keeping up with the times — and ...
Since taking the helm at Gucci at the beginning of 2015, designer Alessandro Michele has singlehandedly transformed the fashion industry. He (like ...
You don't have to raise your hand if you're among the people who choose to take a break from Instagram during Fashion Week; we know you're out there, and ...
Last February, we were treated to a crayon-colored, upbeat disco for Ashish's, fall 2016 presentation. This season, however, Ashish Gupta took a more ...
I have been working in the fashion industry for just over eight years now, but I’ve spent the majority of my life being big. Even in my wildest fashion ...