Boston, MA 07/01/2014 (wallstreetpr) – American Eagle Outfitters (NYSE:AEO) has announced plans to open at least three stores in Britain this autumn as the fashion company makes foray into the country that is fast becoming the Mecca of fashion companies.
Many global fashion companies have in recent months moved to establish stores in the U.K. with the main focus being London. American Eagle Outfitters (NYSE:AEO) will be the latest among global fashion brands to pitch tents in the U.K. As a matter of fact, several other U.S. companies have also moved to establish store locations in the U.K. amid intense competition in the domestic market.
U.S. fashion brands such as Forever 21 and J Crew are already in the U.K.
American Eagle’s (NYSE:AEO) three stores in the U.K will be located in shopping centers in Westfield Stratford City, Bluewater and Westfield London. The Bluewater store will take up 4,818-square-foot of space while the Westfield stores will cover about 9,000 square-foot of space.
100 stores in 14 countries
American Eagle Outfitters (NYSE:AEO) aims to open 100 new stores in 14 countries by the end of 2014.
According to company official Simon Nankervis, there is a tremendous appetite for American Eagle brands in the global market and the move to the U.K. signals the start of a foray into new and promising markets.
The company already operates in Middle East where stores are operated under a franchise arrangement.
American Eagle Outfitters (NYSE:AEO) has more than 1,000 stores across the U.S., Canada, Mexico and China. It also ships to about 81 countries worldwide through online sales.
The company has been reducing its store locations in the U.S., where it continues to face intense completion, which has resulted in revenue and profits decline.
American Eagle Outfitters (NYSE:AEO) made its last financial reporting in May during which it reported earnings of $0.02 per share compared to earnings of $0.18 per share in the same period a year earlier. Revenue for the quarter was $646 million, demonstrating 4.8 percent decline on a year-over-year basis.
However, the company has high hopes in its investments overseas.