AEO » Topics » Susan McGalla - American Eagle Outfitters Inc - Chief Merchandising Officer, President

This excerpt taken from the AEO 8-K filed Mar 7, 2006.

Susan McGalla - American Eagle Outfitters Inc - Chief Merchandising Officer, President

All right. First of all, Adrienne, as it relates to denim, we are, as I told you, we spent years, every month of the year, we're constantly working on what our next strategy in denim will be and back to school is the most important time period for launching newness. The one thing I will tell you is that we have had in work, for the past eight months, since we launched last back to school, is a positioning for this coming third quarter, a significant amount of newness that will be driven into our denim category. We are going to be leveraging all of our key fits that our girl and guy come to us for that we've built market share in, but we will be offering some new fits and also compelling, a compelling amount of newness in wash jeans.

So we are very excited and the fastest growing category, we will absolutely be anniversarying our value price point at $29 and $39.50 and making sure that we maintain that penetration. Our growth right now is actually coming at jeans over $40. So we are going to be very strategic about that. Very balanced in our price positioning. But we are very, very excited about where we're moving toward for back to school in denim. And then what was the other question?

Joan Hilson - American Eagle Outfitters Inc - SVP-Finance

With respect to the, Adrienne, with respect to the sales productivity, our goals are to achieve $550 to $600 per square foot and we believe that we're seeing strong productivity in our stores, we have seen historical levels that were relatively high but at this point we do have a larger store than we did historically, so we feel comfortable with that target of $550 to $600, with the growth initiatives that we have in the pipeline.

Adrienne Tennant - Wedbush Morgan - Analyst

Okay. And then Susan, just, did you have -- the penetration of denim, last back to school season.

Susan McGalla - American Eagle Outfitters Inc - Chief Merchandising Officer, President

Do we quote that? Yes, we're right around that 20% range that we have been -- that we've been running and we will be planning it somewhere around there, with the opportunity to grow it.

Adrienne Tennant - Wedbush Morgan - Analyst

Okay. And then just with the skinny leg silhouette, are you a believer in that and will you be playing that?

Susan McGalla - American Eagle Outfitters Inc - Chief Merchandising Officer, President

We're certainly aware of that. I think the great thing about how we approach these trends is we certainly have to be aware of them, but our design team is working very hard to take that trend and figure out precisely what it means for our American Eagle girl, and you will see our American Eagle version of that trend for this back to school.

Adrienne Tennant - Wedbush Morgan - Analyst

Okay. Great. Thank you so much. Good luck.


Your next question comes from the line of Janet Kloppenburg with JJK Research.

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