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Published
Nov 3, 2015
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American Eagle acquires Tailgate Clothing Company

Published
Nov 3, 2015

American Eagle Outfitters, Inc. announced Tuesday the acquisition of Tailgate Clothing Company for $11 million in cash and stock. The acquisition includes Tailgate Clothing Company’s brands, Tailgate and Todd Snyder.


Todd Snyder


As per the acquisition, Todd Snyder, the Founder and Creative Director of his namesake label, Todd Snyder New York, has been named Executive Vice President of American Eagle Outfitters. He will report to Chad Kessler, Global Brand President of American Eagle. Jimmy Olsson, CEO of Tailgate Clothing, will also join American Eagle as Vice President and will continue to lead the day-to-day operations of Tailgate and Todd Snyder New York.
 
“We are thrilled to add these unique brands to our portfolio, which provide exciting new business opportunities,” said Jay Schottenstein, Interim CEO. “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.”

“Joining a leading American retailer is an exciting step for our brands and provides a strong foundation for future growth,” said Todd Snyder. “Our new Tailgate store concept is an ideal outlet to integrate AE jeans and apparel, creating a unique lifestyle destination on college campuses. I look forward to contributing to AEO’s future success.”
 
American Eagle also raised its third quarter EPS expectation to $0.34 per diluted share, representing growth of 55% from adjusted EPS of $0.22 last year. The company reported a 9% increase in comparable sales in the third quarter. 

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