Dive Brief:

• American Eagle Outfitters made official Jay L. Schottenstein’s role as CEO, a role he’s filled on an interim basis since January 2014 and held previously from 1992 through 2002.

• American Eagle gave Schottenstein credit for its turnaround as it also reported an increase in Q3 earnings. Earlier this month the retailer said Q3 same-store sales rose 9% and Q3 revenue rose 8% to $919.1 million, shy of the $927 million estimated by Thomson Reuters.

• The retailer raised its guidance for earnings excluding items to 34 cents a share; Wednesday it reported earnings excluding items of 35 cents a share, up from 22 cents year-over-year.

Dive Insight:

American Eagle Outfitters is among the teen-focused brands that lost their way post-recession, unable to capture teens' attention—or dollars—with logo-centric, same-same apparel. The retailer this past summer made a splash to improve its jeans line and moved to scale back promotions. It’s also seen success with its Aerie lingerie line, with a marketing approach for that brand that eschews photoshopping its models. 

This fall it announced the acquisition of American designer Todd Snyder’s eponymous menswear label and his Tailgate label for $11 million in cash and stock. That move helps shift American Eagle away from its current dominant fast-fashion approach toward higher quality, higher priced apparel and to appeal to an older, more fashionable customer.

The challenge for Schottenstein going forward will be to maintain the retailer’s momentum and differentiation and to incorporate its acquisition of its new Todd Snyder brands into its American-style ethos.