American Eagle to Close 150 Stores
Posted on May 22, 2014American Eagle has announced plans to close 150 stores in its first quarter report. The news of store closures comes as interim American Eagle CEO Jay Schottenstein cites a quarter with "weak sales and increased markdowns." The company's net revenue was down 5% and profit was down 15% compared the quarter a year before.
American Eagle closed 20 stores in the first quarter, while opening 11 locations. They plan to to close 150 stores in North America over the next three years, including nearly 100 AE stores. American Eagle is planning to close approximately 50 AE and 20 aerie stores in North America this year.
Reuters reports that American Eagle says it plans to upgrade its website and launch a new app to boost sales. Competition from fast fashion brands has been a factor in decreasing sales at American Eagle.