American Eagle Outfitters' CEO said Wednesday that the brand wants to launch a beauty business before the holiday shopping season.
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"We have a special name for it," American Eagle Outfitters CEO Jay Schottenstein said Wednesday on an earnings call. "We have a special kick-off and we're going to surprise everybody. So we're not going to tell you now. It will be very exciting. We think we've done some customer research. It's been very positive. We think there's a big opportunity for us to get into the beauty business."
The company's announcement comes as the beauty industry is in a phase of disruption. Although beauty is currently a $532 billion industry, Ulta Beauty warned in its latest earnings report last week that the industry as a whole is still struggling.
American Eagle also announced earlier this year that it is teaming with Green Growth Brands to sell CBD-infused lotions, balms and other products in nearly all of its stores and online.
The company did not say whether its beauty business will be internally created or acquired. The brand already sells limited makeup products including concealers and eye shadow palettes.
FOX Business' inquiries to American Eagle were not returned at the time of publication.
Shares of American Eagle are down 13 percent year-to-date. Ulta's stock is down 2.9 percent year-to-date.