The Wall Street Journal-20080118-American Eagle Outfitters- Kids Brand Will Target Modest-Income Families

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American Eagle Outfitters: Kids Brand Will Target Modest-Income Families

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American Eagle Outfitters Inc. said it plans to launch a new children's apparel brand, "77kids by american eagle," which will feature clothing for kids ages 2 to 10 at moderate prices. The move puts the clothing company, known for capturing a young mainstream crowd, into a category dominated by discounters like Wal-Mart Stores Inc. and Target Corp. American Eagle Chief Executive James O'Donnell said his strategy will target not just kids, but moms who control modest family budgets. The 77kids brand will appear at an online store this year, though plans exist for brick-and-mortar stores, Mr. O'Donnell said. The brand will feature denim, fleeces and polo shirts, among other items.