Dive Brief:
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American Eagle Outfitters Inc. announced it would close 150 stores in North America and said same-store sales would likely continue to decline. The retailer’s Q1 consolidated same-store sales dropped 10% compared to last year, worse than expectations.
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To improve its performance, the company will also work on its website, introduce a new mobile app, and make product improvements, according to acting CEO Jay Schottenstein.
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Last year the retailer closed 42 stores. This year it will likely close 50 American Eagle stores and 20 aerie stores and plans to close a total of almost 100 American Eagle stores in the next three years.
Dive Insight:
American Eagle Outfitters is hurting from the competition of fast-fashion giants like H&M and Forever 21. If it’s going to perform well in the higher priced teen apparel market, a retail sector with loads of competition, it must take a good look at its product line, analysts say.