American Eagle Outfitters Inc. has promoted Chad Kessler and Jennifer Foyle to the new posts of global brand presidents for its American Eagle Outfitters and Aerie brands, respectively.
Kessler, a veteran of Abercrombie & Fitch Co. closely associated with the successful launch of its Hollister brand, joined American Eagle in August as chief merchandising and design officer of the AE brand.
Foyle, a veteran of Gap Inc. who later served as chief merchandising officer of J. Crew Group and subsequently as president of Calypso St. Barth, joined the company in 2010 as chief merchandising officer of the Aerie brand.
Both continue to report to Roger Markfield, executive creative director of the Pittsburgh-based company. While overseeing brand design and merchandising, the teams reporting to them will be realigned to incorporate mainline stores, e-commerce, factory outlets and international markets to foster what the company described as a “cohesive and singular brand experience.”
The structure is similar to the “global brand” structure instituted by Gap Inc. in 2013.
Markfield credited Kessler with being “instrumental in our business improvement, driving stronger AE merchandise assortments, rooted in outstanding quality, innovation and affordability. He has the right brand vision, creative expertise and knows our customers well.”
Foyle, he noted, “has led Aerie’s transformation to a youthful, real intimates brand for a new generation of customers.”
While generally viewed as the teen retailer among the sector’s “Three A’s” — the others being Abercrombie & Fitch and Aéropostale Inc. – which has rebounded most decisively from the industry’s years-long slump, American Eagle has continued to face top- and bottom-line challenges.
The company is scheduled to report fourth-quarter and full-year results Wednesday morning. Through the first 39 weeks of fiscal 2014, net income fell nearly three-quarters to $18.7 million, from $72.5 million, as revenues declined 2.3 percent, to $2.21 billion, and comparable sales fell 7 percent, with an 8 percent decline at American Eagle only partially offset by Aerie’s 3 percent increase.
The company doesn’t break out sales by brand, but Aerie’s sales in 2013 were estimated to be about 8 percent of the company total of $3.3 billion, or under $275 million, with the remainder attributable to American Eagle. At the end of the third quarter, the company operated 1,092 stores, 104 under the Aerie brand and the rest as American Eagle units.
The company has established the position of brand president even as it enters its second year without a permanent chief executive officer. Jay Schottenstein, chairman, has served as interim ceo since the dismissal of Robert Hanson as ceo last January after a two-year tenure in the post.