Oops...

Ok I take back what I said.

Somehow I missed the headline last week that AE Outfitters is closing down Martin & Osa after the brand racked up $33 million in losses for the company in its last fiscal year. I am surprised, but not shocked - It was certainly clear that the brand never really hit the ground running. But I guess since they kept it afloat for 4 years, I assumed it had to have been providing some kind of worthwhile cash flow for the company, if only to fund its activity with its flagship label.

When I think about it, I am a little inquisitive about why it didn't work out. For starters, like I had mentioned before, M&O was, from the beginning, a stark contrast from AE. It targeted an older audience (say, mid 20s and 30s) with a more trend-focused aesthetic. So, rule out the issue of cannibalization - because that wasn't (or shouldn't have been) the case.

The product - in my opinion, the product was good. It was great quality, on point with trend, and value priced. There was variety and choice. Martin & Osa stores also carried shoes and accessories from other brands, including Ray-Ban, Linea Pelle, and Dolce Vita - which not only improved their assortment, but also allowed the brand to disseminate clearly to the customer the kind of look and lifestyle it was aiming for.

The only major issue I can pinpoint is in the company's marketing initiatives. I don't feel like they pushed the brand in any way, or made enough of an effort to create a buzz. Almost 4 years in and I still know many people who say "What's Martin & Osa?"

Though I'll be sad to see the brand go, I suppose it was a good decision: $AEO.N went up a dollar and three cents that day to $18.18.