Dive Brief:
- In a planned leadership transition, American Eagle Outfitters announced Thursday that Chief Operations Officer Michael Rempell is exiting the company in early fiscal 2024.
- The retailer is currently searching for a successor. Rempell will stay on during that process to “ensure a smooth and successful transition,” according to the company.
- In a separate announcement, American Eagle Outfitters said it expects second-quarter revenue to be flat to last year, updating its previous guidance for revenue to be down low-single digits.
Dive Insight:
After over two decades with American Eagle Outfitters, Rempell is exiting the company to spend time with his family.
During his time with the retailer, the company went from $1 billion to over $5 billion in revenue.
“Michael’s accomplishments have been substantial, including the launch and expansion of our successful and profitable digital channel; building an efficient and fluid sourcing capability; transforming our supply chain to compete on both speed and cost; and most recently, strengthening our store operations,” CEO Jay Schottenstein said in a statement.
Rempell began working with AEO in 1999 as a consultant and then joined the company in 2000 to launch AE Direct. As chief operations officer, he leads all aspects of global supply chain including production, sourcing, logistics and distribution. He also oversees technology, digital commerce, corporate strategy, customer operations, the AE and Aerie stores organization and the Todd Snyder brand.
Regarding the company’s updated forecast, it expects operating income to exceed its previous guidance of $25 million to $35 million. AEO will report second quarter results on Sept. 6.
“I am pleased to note that demand picked up in late June, with strength continuing as we introduced our initial Fall collections in July, reflecting newness centered on emerging trends across our brands,” Schottenstein said in a statement regarding the raised guidance. “Looking to the second half of the year, we remain focused on building our category leadership and creating unique customer connections, while maintaining a sharp eye on improved profit flow through.”
In another operations change earlier this year, Quiet Platforms President and American Eagle Chief Supply Chain Officer Shekar Natarajan exited due to “changes within the Quiet Platforms organization.” Quiet Platforms Chief Operating Officer Brent Beabout left the company in March. The retailer acquired Quiet Logistics in late 2021 for $350 million in cash. The company operates independently from AEO and offers in-market fulfillment services for the retailer and other consumer brands.
