That will take the total number of aerie units to 40, and "atleast 50 more aerie stores will open in 2008," Susan McGalla,president and chief merchandising officer, said during a conferencecall. "All aerie units will evolve during the second half," sheadded, noting that "aerie fit," featuring fitness apparel will beadded for the holidays, and bath and body products are also inplans for the brand.

Despite emphasis on growing the aerie brand, McGalla also saidthe American Eagle brand represents "our most powerful opportunityfor growth," and that brand's reach is broadening through AE.com.During second quarter six new AE units were opened, and 26 wereremodeled.

A new AE store format will launch this November. The goal isimproved productivity, according to James O'Donnell, CEO. He said250 AE stores are targeted for expansion and renovation during thenext few years. Sales per sf in the locally based retailer'sflagship brand reached $540 per sf this year, he said.