Getting American Eagle into the Private Label Business

Today marks the 26th anniversary of American Eagle Outfitters—a milestone that brought back a flood of memories. This morning, I was on the phone with Jay Schottenstein and my brother Paul. Jay was full of energy, eager to reminisce, and it quickly turned into an emotional moment for the three of us. We reflected not only on the growth of the company but also on the journey we took together to help shape what AEO is today.

When Jay and his father Jerome Schottenstein acquired American Eagle Outfitters, the brand focused primarily on casual and sportswear for the 15–25-year-old market. In its early days, AEO operated like most traditional retailers—buying products from outside brands to resell in its stores. Back then, the only jeans they carried were Levi’s.

That began to change in late 1991. Paul approached Jerome and Jay with a bold idea: to create a private label denim line under the AEO brand. They were intrigued and agreed to test the concept. The first order was for 24,000 pairs of jeans—with a clear mandate to get the entire organization behind it.

At the time, making denim in Mexico was no small feat. NAFTA hadn’t yet come into effect, and producing a full-package jean south of the border was challenging. But we pushed forward, and the result was historic: the first 100% Mexican-made jean ever exported to the United States.

We delivered the first shipment in March 1992. The jeans fit well, looked great, and—most importantly—sold fast. Just a few weeks later, Paul called, ecstatic. The follow-up order was for 630,000 pairs.

We fulfilled that order, and from there, things took off. Over the years, we produced millions more. In the process, we helped AEO build a thriving private label program—laying the foundation for the company’s evolution into one of the most recognized names in global retail.

Paul, with his constant flow of product ideas and trend insights, played a crucial role in keeping AEO ahead of the curve, while dedicated teams worked behind the scenes to scale operations.

Recognizing the strength of our partnership and its role in AEO’s long-term success, Jay graciously offered us the opportunity to acquire 10% of the company. It was a gesture that spoke volumes about the mutual respect and shared vision we all held.

Today, American Eagle is widely regarded as one of the best-managed retailers in the industry—second only to Levi’s in denim. More than anything, what endures is the friendship. We were there at the beginning, and we’ll always carry the pride of having played a small but meaningful part in a remarkable story.