Spring break came early to the New York Stock Exchange on Thursday, courtesy of American Eagle Outfitters.
The facade of the NYSE on Broad Street in lower Manhattan was covered with a banner featuring an image of young men and women frolicking in the sun from American Eagle's new ad campaign. A similar scene came to life in a tent outside the exchange building, where "boys" and "girls," as the company calls its 15- to 25-year-old customers, played miniature golf, soccer and Hacky Sack, wearing clothes from the spring break collection.
The hoopla celebrated American Eagle's move from the Nasdaq to the NYSE. Chief executive officer Jim O'Donnell, along with Susan McGalla, president and chief merchandising officer of the American Eagle brand; chairman Jay Schottenstein, and vice chairman Roger Markfield helped ring the bell to signal the start of the trading day. The stock, which trades under the symbol AEO, closed at $30.25.
McGalla said in an interview that American Eagle's marketing budget is about 2 percent of sales, which totaled $2.8 billion last year, but she wouldn't reveal the cost of the spring break campaign, which includes events in Acapulco and Cancun, such as performances by Fergie and Ludacris. "We've taken our ownership of spring break up this year," McGalla said, adding that American Eagle provided themed shower curtains and window stickers to hotels. The company has even trademarked the phrase "winter break" for the fourth quarter.
McGalla described the move to the NYSE as a "milestone. Now we have a portfolio of brands." The company's goal is to reach $10 billion in sales.
American Eagle's aerie subbrand is slated for accelerated growth with an eye toward becoming a full-fledged brand. In the fall, aerie will launch a personal care line. The subbrand recently introduced the Paige push-up bra, and more bras are scheduled to bow this year. "We're launching an extension of dormwear for aerie," McGalla said. "It will address something we're not addressing today. The whole positioning of aerie is sweetly sexy. This is the intimate side of her, it's the first layer. This [new line] will take her outside the dorm room."
Issa Rae stopped by WWD's NYC headquarters to talk about season two of "Insecure," which premieres this Sunday on HBO. Click link in bio for all the details. #wwdeye (📷: @jgreenery; Styled by @mayteallende)
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"