at first I thought you said american apparel. but you said american living which is at JC Penny.
From the look of it, yes, it could be considered preppy. i believe it is a knock off low end version of Ralph Lauren.
of course this depends on your age. if you are over the age of 30, preppy to us is places like Ralph Lauren, Brooks Brothers, J. Crew, LL Bean, etc.
If you are under the age of 30, you would be apt to call things like holliser, abercrombie and such preppy.