In recent news, American Eagle Outfitters is making big moves internationally. Escaping the United States highly saturated market will help increase profits and revenue for the company. There were also discussions on high hopes for AE’s intimate brand Aerie. The retail company is looking towards a bright future with newer business ventures. According to Forbes.com, hiring their new president Kitty Yung to be in control of their Asia-Pacific operations makes progress inevitable. Seemingly, there seems to be a correlation between Yung’s work and increasing profits.
Since moving international, AE has already opened up stores in Mexico, the Philippines and in the process on moving in to Thailand. Expanding their franchise will also increase their sales by being able to sell more full priced items. Fortunately, Aerie seems to be only one of two intimate brands targeting teenagers. Expanding the franchise can push the retail company into the right direction. Competitors Victoria’s Secret’s Pink Line is marketed heavily to college student leaving Aerie to dominate ages 14-19. The target audience AE is trying to reach is the teen generation so incorporating Aerie more in the new stores will help strengthen the brand’s longevity. Indeed 2013 was a challenging year but a minor setback is a major comeback.
