American Eagle eyes a bigger share of the college market
November 3, 2015 08:00 PM
Apparel retailer American Eagle has turned its attention to college sports fans.
The retail chain, No. 75 in the Internet Retailer 2015 Top 500 Guide, acquired online clothing retailer Tailgate Clothing Co. for $11 million in cash and stock. Tailgate has sold online since 1997 and opened its first store in Iowa City, Iowa, last year.
Tailgate focuses primarily on vintage collegiate sports apparel, selling T-shirts and hooded sweatshirts through its website. The company offers free shipping and returns on all online orders.
As part of the deal, founder Todd Snyder and CEO Jimmy Olsson will join American Eagle in the respective roles of executive vice president and vice president. According to his LinkedIn profile, this will be Olsson’s second round with American Eagle, where he worked from March 2005-June 2009 as vice president of merchandising.
Through the first half of the fiscal year ending Aug. 1, American Eagle, which does not break out online sales, reported:
- Net revenue of $1.50 billion, up 10.3% from $1.36 billion during the same time last year.
- Net income of $62.3 million, compared to $9.7 million.