American Eagle Outfitters earnings tumbled more than 86 percent in the first quarter on huge mark downs intended to create higher customer foot traffic. The teen retailer said that it would close 150 stores over the next three years.
The Pittsburgh-based company is attempting to reorient itself after a dismal sales spell.
Profits fell more than 60 percent last year and revenue fell 5 percent.
Out of the 150 North American stores it plans to close over the next three years, nearly 100 of them will be American Eagle stores.
The chain anticipates closing about 50 American Eagle stores and 20 aerie stores in North America in 2014.
It expects annual savings of approximately $10 million to $15 million related to the store closings starting in 2015.
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