Is American Eagle Closing 2023? If you love shopping and are in the habit of doing the same frequency, you’re aware of American Eagle Outfitters, or even it may be one of your favorite stores in America where you love to shop. Right… It’s no wonder that American Eagle is a well-known and trending brand, famous for its clothing and accessories that mainly target a younger audience.
We hope you’re familiar with its sister brands, i.e., Aerie, and Offline deals, especially in denim and activewear. Did you know what happened and what steps have been taken by AEO recently? We are announcing with great disappointment that American Eagle has closed its several locations. No, No, No, Don’t think that these closures are sudden, these closures are planned, and several stores have already shut down.
If you want to know more, you must read on to find out how many stores have been closed, how American Eagle Came Out, What is the reason behind and almost everything about American Eagle’s closure.
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Is American Eagle Closing?
Yes! You’ve heard it right!! It was noted that, in 2023, American Eagle decided to close more than 200 of its stores out of 887 stores worldwide. The reports stated, “A.E. has closed its store located at East Hills Shopping Center in St. Joseph, Missouri by January 15, 2023.”
You can still access American Eagle items online because the company declared, “We are closing doors, but it does not mean that the shoppers have no access to items online. They can still buy items online.” This news was also reconfirmed by the owner of Craig Realty, Steven Craig.
Craig also stated, “Yes! American Eagle is shutting their doors in 2023,” He added, “We’ve noticed that today, the consumers are shopping in a completely different manner if we compare the shopping from 52 years ago when it was established. We continuously see the different uses for the mall. This time shopping is something different, people shopped, and the shopping is more of its target. Yeah! We know people are shopping but not an entire mall, only one or two stores.”
When American Eagle shuts down its doors, its vacant places will also be used for entertainment, built offices, and athletic purposes. No, it is not the final decision regarding how to utilize the vacant spaces, but Craig is anticipating all this.
He added, “We are not sure what the next step will be. But looking to open various things at the vacant place of AEO. What will those things be? We are not confirmed.”
American Eagle Outfitters (AEO) announced closing its stores in at least 200 to 250 locations. It held 880 American Eagles stores and planned to remove more locations and open around 50 new stores to rebuild and maintain its locations in 2021.
Now, they expect to open several more stores to bring the total to around 500 to 600 Aerie stores in 2023.
The company planned to double its Aerie business revenue to more than 2 billion U.S. dollars by 2023. They want to double their profit under this American Eagle brand store.
Why Did American Eagle Decide To Close Its Several Stores?
The company aims to raise the revenue and operating income for the fiscal year 2023 of approximately 5.5 billion U.S. dollars and 550 million U.S. dollars, respectively. They aimed to expand their revenue to 10 percent. It does not include potential asset impairment and restructuring charges.
American Eagle Outfitters executive chairman and CEO of the company Jay Schottenstein stated, “We are emerging with momentum, and the year 2020, was demonstrated as the strength of AEO brands, our capabilities, and our organization.” he continued, “We are continuously observing acceleration over the past year and I believed that the environment is growing with potential and I find that there is a vast opportunity for AEO than ever before.”
According to reports, More than 3 percent of stock has been increased by the AEO.
The company observed a reduction in the low single digits in revenue in the fourth quarter of 2020. Due to revenue reduction from weak mall traffic, decreased time related to the coronavirus outbreak, and store closures.
Its fourth-quarter revenue was raised by 20 percent in 2020. Later, the company decided to reduce in the low double-digit range, leading to the closure of American Eagle Stores.
In November 2022, it was believed that the president and executive director for AEO and Aerie called the investors and confirmed that the company decided to shut down its store’s doors.
Not all stores decided to close their doors, but only those that were unproductive and underperforming. This made new room for the new stores to open, and they planned to expand the business with new openings and close the low-performing stores worldwide.
How American Eagle Came Out?
The Silverman Brothers initiated the step and operated American Eagle with the name Silvermans Menswear. In 1970, two of the Silverman Brothers worked the business. The company’s president and CEO, Jerry Silverman, need to diversify their service to expand their business.
Later, the company operated more than one store in the exact location. In the same year, they attempted to open their first store American Eagle Outfitters, in 1977.
It deals in apparel, footwear, outdoor sports, mountain, climbing, hiking, camping, and accessories for men and women. At that time, American Eagle had established its stores in shopping malls and catalogs. After several years, the chain successfully grew in 1980.
In 1989, they decided to shift their focus to expand the business on American Eagle Outfitters; at that time, there were more than 137 stores in 36 different states across the country.
It was noted that, in 1991, American Eagle Outfitters opened 16 new stores to grow their business quickly after the reorganization. But they start losing money.
When the company realized that, it sold 50 percent of its chain to Schottensteins, changed the structure of the company, and started dealing in casual clothing for men and women with private label clothes.
In 1994, the company opened 167 stores. When they started trading on the NASDAQ stock exchange, it led to healthy business growth with a good cash flow. In 1995, American Eagle opened new stores (more than 90 stores). Later in 1995 and 1996, other representatives joined the company to expand the business.
In just 5 years, the company had a 1 billion U.S. dollars turnover by 2000. In 2000, the company opened its very first store in Canada. It was believed that, in 2014, the company was owned by Jay Schottenstein, whereas the previous CEO was Robert Hanson.
A few years back, in 2016, they successfully opened 949 American Eagle stores across the United States. The highest number of stores opened in Aerie, including 97 stand-alone and 67 side-by-side stores inside the shopping mall. AEO has opened its stores in the U.S. and other countries, such as Hong Kong, Mexico, China, the United Kingdom, Canada, etc., worldwide. It has franchise partners in more than 10 countries and 21 franchised stores operated by them.
Who Are The Biggest Competitor Of American Eagle?
As American Eagle is one of the top-selling brands worldwide. It has rival companies that always be the biggest competitor of AEO, including Shake Shack (SHAK), Rush Enterprises (RUSHA), Petco Health and Wellness (WOOF), Urban Outfitters (URBN), GAP (GPS), Buckle (BKE), Abercrombie & Fitch (ANF), Nordstrom (JWN), Papa John’s International (PZZA), and GMS (GMS).
What Company Owns American Eagle?
The founders of American Eagle Outfitters are Jerry and Mark Silverman. American Eagle Outfitters, Inc. is a clothing and accessories store founded in 1977 in America; it is a parent company of Todd Snyder and Aerie. It is headquartered in Pittsburgh, Pennsylvania. Its subsidiary is Retail Ventures Inc., also owned by Silverman’s Menswear.
In 1991, Silvermans sold the company to Jacob Price in Knoxville, Tennessee. American Eagle offers polo shirts, boxers, outerwear, graphic T-Shirts, jeans, and swimwear. It mainly focuses on high school, male, and female university students; students and adults wear this clothing and accessories.
In 1977, American Eagle Outfitters opened its first store in Novi, Michigan, called Twelve Oaks Mall. Now the company has opened hundreds of stores under the American Eagle brand, in which most of the stores are located in Aerie, and Todd Snyder across Mexico, the United States, Canada, and Hong Kong.
Highlights
- Trade: American Eagle
- Industry: Retail
- Founded In: 1977
- Founded By: The Silverman Brothers (Jerry Silverman and Mark Silverman)
- Headquartered In: Southside Works, Pittsburg, Pennsylvania, United States
- Area Served: Globally
- Products: Accessories, Lingerie, Personal Care, Footwear, Apparel
- Number of Locations: 1,307 retail stores
- Revenue: 3,759 billion U.S. dollars
- Net Income: 209.97 million U.S. dollars
- Operating Income: 271.35 million U.S. dollars
- Total Assets: 3,435 billion U.S. dollars
- Number of Employees: more than 37,000 employees
- Website: ae.com
Wrapping Up
Ultimately, we’ve concluded that AEO closed its multiple locations in 2023. The company decided to close its predominantly mall-located stores permanently. These closures were planned for 2022 and will continue until the end of this year (2023).
It has been estimated that AEO is closing more than 200 of its stores, but we are still determining if there will be any further closings. Need to know what the company is planning to do next.
Based on the performance, they are planning to close its locations. The company held hundreds of locations and now leaving only 600 of its stores. But this is not the end of American Eagle Outfitters, as they are also planning to open new locations.
