American Eagle Outfitters, Inc.

The 2013 back-to-school season is lackluster at best for retailers. Based on my work with millennials and my agency's research, here are eight reasons why the season is such a disaster:

The companies that start the most word-of-mouth conversations are the ones that offer something truly remarkable — the ones that stand out from their competitors. So when American Eagle Outfitters took a look at its prospective market and realized it was facing "a sea of sameness," it turned to its customers to help them launch a brand identity worth talking about. In her presentation at SocialMedia.org's BlogWell conference in Chicago, Jamie Simoni, American Eagle Outfitter's marketing manager for social media, describes the contest it used to inspire more word-of-mouth than any traditional advertisement. 

Michael Kors 553,161 956,368 73% CVS 7,273,276 10,877,674 50% American Apparel 380,814 534,573

When was the last time American Eagle Outfitters did something kind of cool with their ads? Answer: We're blanking. But it looks like the retailer's higher-ups decided to hire an ad agency that's in touch with kids these days: Welcome, America's favorite mall staple, to the ironic viral video method. In the psuedo-commercial, you'll find good looking teens saying stock quotes about individuality in the name of really, really tight (spray on) jeans. The tagline? "Lookin' tight," which is pretty hilarious.

American Eagle’s latest campaign for its aerie label is a great example of using mobile to drive traffic to the brand’s social presence. To celebrate reaching 1 million “Likes” on Facebook, aerie sent a text message with a free shipping offer to encourage even more consumers to become fans of the brand on Facebook.

American Eagle Outfitters said it would exit its children's apparel business, which had a loss in the last fiscal year. The company said it was "exploring options," including a full or partial sale of assets for the 77kids by American Eagle brand, the company said in a statement. The brand had a net loss of $24 million on sales of $40 million in the year ended Jan. 28, according to the statement. American Eagle said in a separate statement that its chief financial officer, Joan Hilson, planned to step down after more than six years at the company.

Online sellers Amazon and eBay gained brand value last year at the expense of brick-and-mortar retailers such as Best Buy, according to an Interbrand report. Amazon's brand surged 32 percent in a year, the most in U.S. retailing, while eBay's increased 16 percent, Interbrand said in a statement. 

American Eagle Outfitters said its debut store in Israel will open tomorrow at Ramat Aviv Mall in Tel Aviv. American Eagle has been expanding its international presence for the past three years, now with 21 stores in 10 countries, partnering with retail experts in each region. Today, there are franchise stores open in Russia, China, Hong Kong and various cities throughout the Middle East.

American Eagle Outfitters' CEO James O'Donnell will step down Saturday in a move that was expected. He will be replaced by former Levi's executive Robert Hanson. O'Donnell, 70, said early last year he planned to retire. Hanson was named as his successor in November after a lengthy search.

American Eagle Outfitters plans to expand in Japan, with the opening of three stores in Tokyo in 2012. The retailer's first store in the country is slated to open on April 18 in a new retail development.