On Thursday, American Eagle Outfitters said it would close 150 of its stores over the next three years.
And no, we don’t know which ones will close.
The company’s store brands include American Eagle and aerie. The closures would include some 100 AE stores, with the rest being eerie stores.
Last year, American Eagle closed a total of 42 stores; this year, it plans to close another 50 American Eagle locations and 20 aerie locations.
Again, there is no list of which stores will close.
And yes, we’re well aware that The Mall at Barnes Crossing in Tupelo is home to an American Eagle store. We’ll just have to wait and see what happens.
So why the closures? Quite simple: Falling sales and profit.
Said the Wall Street Journal:
The store closures are one way American Eagle seeks to trim expenses, as it contends with lower margins, which dropped to 35% in the first quarter from 39% in the same period last year.
Profit plunged 86% to $3.9 million for the period ending May 3, while comparable same-store sales dropped 10%. Revenue fell 5% to $646 million.
American Eagle expects it can save between $10 million and $15 million in 2015 by closing locations across its 1,000-store chain, including 70 at its American Eagle and Aerie brands in North America this year. The retailer is also hoping to negotiate rent reductions at existing store locations.