Teen retailer American Eagle Outfitters Inc. is expanding its clothing brand to toddlers and youngsters. Its 77kids brand extension is moving from the Web to branded stores, with its first standalone retail store opening in Pittsburgh this week. As part of a bigger retail push, 77kids will have at least seven brick-and-mortar stores in the U.S. by the end of this year.

AE first tried expanding its customer base by targeting older customers with the Martin + Osa brand, which proved unsuccessful and is now winding down. Next option – skew younger. Selling to kids, of course, offers the built-in advantage of consumers in need of a steady stream of clothes as they grow.

Until early April of this year, American Eagle Outfitters used a pop-up temporary store in Pittsburgh to test consumer demand for its 77kids concept. The results were gratifying enough to warrant a larger, permanent retail footprint for the kids brand.Continue reading...

After customers complained, Wal-Mart puts more products on its shelves. [Reuters]

Furriers are experiencing a profit boost thanks to recent fashion shows. [NY Times]

Royal Dutch Shell has concluded gasoline sales with Iran. [WSJ]

American Eagle brand Martin + Osa will dissolve before the summer. [WWD]

Fashion retailers that know how to read the market can survive, and even thrive, in tough economic times. The latest news from American Eagle Outfitters proves this point. The company announced this week that its fourth-quarter earnings were up from $33 million a year ago to $59 million this year. Sales for the quarter were $972 million this year versus $906 million for the fourth quarter last year.

At the same time, American Eagle announced yesterday that it is closing down its Martin + Osa brand, a chain of 28 stores, and an online store. The four-year-old brand just wasn't producing, so American Eagle said it would focus on its core brands – AE, aerie, and 77Kids – all of which have "a greater potential of creating long-term shareholder value," according to CEO Jim O'Donnell.Continue reading...