AEO: American Eagle to Close 150 Stores as Sales Slump

Some 70 to close this year

   

AEO: American Eagle to Close 150 Stores as Sales Slump

American Eagle (AEO) has announced that it’s shuttering some 150 stores — due to sales declines impacting the struggling company.

American Eagle Outfitters 2 300x199 AEO: American Eagle to Close 150 Stores as Sales SlumpThe closures will happen over the next three years — though 70 American Eagle stores and aerie stores are expected to close this year.

The news came as American Eagle released its first-quarter profits of $3.87 million (2 cents per share), falling from $27.98 million (14 cents per share a year ago).

“Results were consistent with our expectations,” Interim CEO Jay Schottenstein said in a statement. “The quarter reflected weak sales and increased markdowns. We are committed to improved profitability and are working hard to implement our plan to strengthen our brands, channels and operations.”

American Eagle saw general declines across the board.

Q1 bet revenue was $646 million, down 5% from $679.5 million for the same period last year.

AEO stock is down 1.5% in early morning trading.

Stock is down 22% year to date.


Article printed from InvestorPlace Media, http://investorplace.com/2014/05/aeo-american-eagle-close-150-stores-sales-slump/.

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