The concept is a departure for the retailer, which normally caters to the 15- to 25-year-old conusmer with its 858-store American Eagle Outfitters units. "Martin + OSA represents an important long-term growth opportunity for our company," says company CEO Jim O'Donnell, in a statement. "It will give us access to the sportswear market for an entirely new generation of shoppers."

The stores will focus on sportswear and denim, executives say. In January American Eagle hired Michele Donnan Martin and Charles Martin, two former Abercrombie & Fitch executives to head the new chain's product design.

American Eagle is the latest of major specialty apparel chains to launch a new concept. In August, Pacific Sunwear executives revealed One Thousand Steps, its new accessories and footwear chain, which they predict can expand to 600 to 800 locations. Also in August, Gap Inc. opened the first stores for women's chain Forth & Towne. Abercrombie, which caters to a similar demographic as American Eagle's traditional stores, last year launched Reuhl, a store that targets shoppers ages 22 to 30.