American Eagle executives land new roles - Jim O'Donnell, Roger Markfield appointed

DSN Retailing Today, Nov 24, 2003 by Emily Scardino

WARRENDALE, PA. -- American Eagle Outfitters just fine-tuned its management team, aiming to bring falling sales aloft. This young men's and juniors specialty store resource has named Jim O'Donnell ceo, while giving Roger Markfield the dual position of vice chairman and president. Since December 2001, they had served as co-ceos at American Eagle Outfitters, but now each executive's role has been dovetailed to reflect his respective areas of expertise, according to how each can best serve the company.

"We are strengthening our organization and redirecting our best talent to the appropriate business functions as we strive to turn around the American Eagle business," said Jay Schottenstein, chairman at American Eagle Outfitters.

Overall corporate sales fell 0.2% under the management of O'Donnell and Markfield to $373.8 million during 3Q 2003, and comp sales declined by 10.3% during the same time frame. Still, a 3.2% overall sales increase year-to-date prompted Schottenstein to give the two executives his vote of confidence.

O'Donnell's strength in corporate management helped land him his new role. "Jim O'Donnell has demonstrated strong leadership and solid operating disciplines. I am confident that, as ceo, Jim will effectively lead a strategic turnaround and position American Eagle for sustained future growth."

At the same time, Markfield has repeatedly demonstrated his ability to build the American Eagle name, which will be his core responsibility going forward.

"I'm pleased to have Roger sharply focused on setting the strategic direction of the merchandising and marketing initiatives of the American Eagle brand, where his talent and accomplishments are proven."

American Eagle is the dominant retail brand in American Eagle Outfitters Inc.'s portfolio, standing at 734 stores in 49 states. This chain is also expanding in Canada, where it operates 63 units. The company has another division in the Canadian market, Bluenotes/Thriftys, which consists of 111 stores and carries a heavy assortment of denim. However, O'Donnell and Markfield will only be responsible for building the American Eagle division.

American Eagle's target audience of 15- to 25-year-olds will not change. Neither will its assortment of private label casual wear, including a broad assortment of jeans, graphic T-shirts and cargoes for both juniors and young men's. The aesthetic is similar to that of its closest competitor, Abercrombie & Fitch, although American Eagle's price points are generally $10 to $15 lower on tops and approximately $15 to $20 lower on bottoms. Though both youth-oriented, casual lifestyle brands cater to a similar audience, American Eagle actively pursues high school-aged customers, while Abercrombie & Fitch remains focused on college students.

Still, competition for juniors and young men's customers is heated, as comps indicate. It will take careful management to make this maturing specialty retailer's sales soar once again.