Pittsburgh - On the heels of disappointing results for the first quarter of fiscal 2014, American Eagle Outfitters Inc. has decided to close 150 stores in America, including 100 namesake stores. For 2014, the company is planning to close approximately 50 American Eagle and 20 aerie stores in North America.
Beginning in 2015, the company anticipates annualized after-tax savings of approximately $10 million-$15 million related to these store closures.
American Eagle's net income plummeted 86% to $3.87 million from $27.98 million. Total net revenue fell 5% to $646.13 million from $679.48 million.
Same-store sales fell 10%. A significant decline in pretax income drove American Eagle’s net income drop.
“Results were consistent with our expectations,” said Jay Schottenstein, interim CEO. “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. Specific actions underway include continuing to build strong omnichannel capabilities, rationalizing our store fleet, reducing expenses, growing international licensed stores, and most importantly, delivering great merchandise and customer experience across our brands. Our focus is on leveraging our strong brands and talented team in order to deliver long-term profitable growth and enhanced value for our shareholders.”