"I think even their management is surprised with themselves and the home run they just hit," said Jennifer Black, head of Jennifer Black & Associates, an independent research firm in Lake Oswego, Ore. "You only see this once in a while where a company steps on the gas, hits all the cylinders and just flies. They are really flying."

In August, when the overall retail industry posted an anemic 1.1 percent sales pace, the Warrendale, Pa.-based chain enjoyed a nearly 24 percent surge in same-store sales from a year ago. Same-store sales — sales at stores opened at least a year— are considered the best indicator of a retailer's health.

American Eagle executives said part of their problems last year came from trying to be too far out front, predicting what customers would want to wear but not actually asking them.

"You can't get ahead of these kids; you've got to be in step," said Susan McGalla, executive vice president and chief merchandising officer at American Eagle. "We are clearly not smarter than our customers."

Their stores were also poorly laid out and confusing.

To remedy the problems, the company put key officers in a position where they would be closer to market testing and research, moving Roger Markfield from the co-CEO job he shared with Jim O'Donnell, and making him vice chairman and president of the company, overseeing merchandising and design.

Analysts say Markfield and McGalla are two big reasons why teenagers are heading to American Eagle stores this year, snubbing many of its competitors — including Abercrombie & Fitch Inc. Limited Brands, Gap Inc. and Wet Seal Inc.

"I just think each of us is focusing on what we're good at," McGalla said in an interview. "We have clearer roles in the company. We've redefined the roles, where Jim is the CEO of the company and Roger is spending more time in New York with the design team. They are both heavily involved."

American Eagle also simplified its stores and revamped its displays, making the new styles easier to find. Entire tables have been dedicated to polo shirts, whereas last year the company tried to be more of a boutique, with a mishmash of merchandise sharing space.

The overhaul seems to have worked. Teen shoppers said they like this season's clothes, and the fact that it's easier to find what they're looking for inside the stores.

"I don't know why I didn't buy much stuff here last year — I just bought it somewhere else," said Mark Gilliam, 17. Now, however, "I've found exactly what I've wanted here pretty quick."