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Todd Snyder, known for his vintage-inspired collegiate Tailgate brand, has joined American Eagle Outfitters as a designer.
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American Eagle acquires Tailgate clothing line

American Eagle acquires Tailgate clothing line

Pittsburgh-based retail chain expands further into collegiate market

American Eagle Outfitters, looking to infuse its middle-American collegiate brand with fresh, smart ideas, has settled on Todd Snyder as one of its new idea guys.

The name won’t be familiar to everyone, but in fashion circles, Mr. Snyder’s name is known for both a premium menswear line sold in places like Nordstrom and for his vintage-inspired collegiate Tailgate brand.

American Eagle Outfitters paid about $11 million in cash and stock to acquire the Tailgate Clothing Co., which includes both of Mr. Snyder’s projects. The deal brings with it Mr. Snyder as an executive vice president and his longtime colleague, Jimmy Olsson, who will take the title of vice president and continue to run the day-to-day operations of the two divisions.

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The announcement comes just as American Eagle reported sales in established stores rose 9 percent during the important back-to-school season. Driven in part by more full-priced selling, the company raised its third quarter earnings projection on continuing operations to 34 cents a share, while analysts polled by Thomson Financial had been looking on average for 31 cents per share.

American Eagle Outfitters’ newly remodeled aerie intimates store at Ross Park Mall.
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The South Side-based teen clothing chain has been among the stronger performers in its sector this year, and the goal with deals like the Tailgate Clothing Co. buy is to differentiate its offerings.

Tailgate could help American Eagle get closer to the college students that it already targets. Mr. Snyder, an Iowa native who lives in New York but still knows how well the Hawkeyes are doing this football season, started out making T-shirts for sports fans. The Tailgate website claims the first versions were sold out of the back of a car, but it grew into a brand sold online.

Tailgate also has one store near the University of Iowa that’s tailored for the fans. That, Mr. Snyder said Monday, plays well with tastes in buying local and unique shopping experiences.

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American Eagle wants to take that concept and run with it, adding jeans and appropriate clothing from its own line.

“We haven’t had success trying to fit an entire American Eagle box on campuses,” noted Chad Kessler, global brand president for American Eagle Outfitters. Large stores designed for malls and shopping centers tend to be too large for the real estate spaces available near campuses, and students or alumni are often looking just to fill in their wardrobes.

The first version of the Tailgate concept to be opened under the new ownership is slated to come next year in Madison, Wisconsin, home of the University of Wisconsin Badgers.

“We’re just looking at different ways to reach that customer that’s college aged,” said Mr. Kessler, who noted the company may also try some of new soft, silky women’s tops in its Don’t Ask Why lines at Tailgate stores. That line has been tested in a small number of American Eagle stores, and a pop-up location opened earlier this year in New York.

American Eagle Outfitters Corporate Campus building in the SouthSide Works complex.
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“We are playing with a few of these ideas,” said Mr. Kessler. “They help keep us nimble.”

Mr. Snyder launched his menswear collection in 2011. Now carried by established retailers like Nordstrom, the line is also found in a standalone store in Japan.

Mr. Kessler sees potential for opening more Todd Snyder stores. He also sees the new team members as helping with the American Eagle menswear offerings, which have underperformed the women’s clothing business of late.

The Tailgate deal came together over a series of dinners, including one in Italy with American Eagle interim CEO Jay Schottenstein and Roger Markfield, executive creative director.

But before this, there were numerous connections between those involved. Mr. Snyder designed for Polo Ralph Lauren and worked on menswear for the Gap and J. Crew, where he worked with iconic retailer Mickey Drexler. Mr. Drexler and Mr. Markfield had worked together and continue to get together regularly.

In addition, Mr. Snyder said he was familiar with Mr. Kessler’s work at places like Abercrombie and Urban Outfitters. At American Eagle, it seemed to him, “There’s a nucleus of people that really appreciate talent.”

His own team is small, he said, with about 15 to 18 people on staff. Teaming with American Eagle will help the brands they’ve created to grow faster.

American Eagle is scheduled to release full third-quarter financial results on Dec. 2.

Teresa F. Lindeman: tlindeman@post-gazette.com or 412-263-2018.

First Published: November 3, 2015, 11:00 a.m.

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Todd Snyder, known for his vintage-inspired collegiate Tailgate brand, has joined American Eagle Outfitters as a designer.
Some of the clothing designed by Todd Snyder.  (American Eagle Outfitters)
The South Side-based American Eagle Outfitters chain has been among the stronger performers in its sector this year, and the goal with deals like the Tailgate Clothing Co. buy is to differentiate its offerings.  (Mark Lennihan/Associated Press)
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