Jerry and Mark Silverman launched American Eagle Outfitters in 1977. American Eagle Outfitters was founded as a division of Silverman's Menswear, which these two brothers previously owned and ran.
The Silverman brothers focused initially on selling sportswear and casual clothing via American Eagle Outfitters. The company opened retail locations in a variety of malls and began selling apparel via mail order. Unfortunately, Silverman's Menswear struggled while American Eagle Outfitters expanded, and it forced the brothers to sell half of their business to the proprietors of Schottenstein Stores in 1980.
In 1992, the Schottenstein's revamped the company's management and restructured it to put more of an emphasis on product offerings for both men and women. After making a cameo on Dawson's Creek in 2000, American Eagle earned a significant teenage fanbase. The corporation went public in 1994. Since then, the company has expanded and now runs over 700 stores across Canada and the US.
The recession, in 2008, had a significant impact on the company's revenues and net profits. But the business could survive the recession by getting rid of non-core stores and brands like 77kids, which resulted in a $35 million after-tax loss. American Eagle had returned to its $3 billion pre-recession sales levels by 2012.
AEO hired a council of nine Gen Z youth in order to better comprehend what matters to consumers beyond what they wear (coined AExME). The council met for the first time in February 2019, and meetings are held regularly, with participants having a vote in significant business initiatives.
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