Premium menswear label Todd Snyder is joining the American Eagle Outfitters (AEO) fold. The young men’s and women’s apparel retailer announced Tuesday the acquisition of Tailgate Clothing Company, the owner and operator of Todd Snyder New York and Tailgate, a vintage, sports-inspired apparel brand with stores in college towns. AEO purchased the company for $11 million in cash and stock.
Founder and Creative Director Todd Snyder joins as executive vice president, reporting to AEO Global Brand President Chad Kessler. Jimmy Olsson joins as vice president and will continue to lead the day-to-day operations of Tailgate and Todd Snyder New York.
Snyder brings his extensive background in retail apparel to AEO. He launched the Tailgate brand in 1997, followed by his eponymous menswear collection in 2011. Prior to Tailgate, Snyder spent more than two decades in retail apparel as a designer for Polo Ralph Lauren, Gap’s director of menswear, and senior vice president of menswear at J. Crew. He was named GQ’s 2012 Best New Menswear Designer, and a 2012, 2013 and 2014 Council of Fashion Designers of America Award nominee.
“We are thrilled to add these unique brands to our portfolio, which provide exciting new business opportunities,” said Jay Schottenstein, AEO Interim CEO, in a statement. “Todd and Jimmy bring exceptional creative talent and operational skills. They will continue to lead the business, as our organization remains focused on driving continued momentum and profit improvement. Capital investments in the Tailgate and Todd Snyder brands will be paced, with a test and scale approach based on profitability and return on investment.”
AEO made the announcement after coming up a positive Q3, reporting comparable sales up nine percent. As a result, the company said it is raising its third quarter EPS expectation to approximately $0.34 per diluted share, representing growth of 55% from adjusted EPS of $0.22 last year. The previous EPS guidance range was $0.28 to $0.31.
Schottenstein said, “In a highly challenging retail environment, we are extremely pleased to see our AE and Aerie brand customers respond positively to product and quality enhancements. We continue to experience greater full-priced selling and less promotional activity, resulting in profit margin expansion.” He added that the company is optimistic about the upcoming holiday season and will continue executing customer-focused initiatives.