American Eagle Outfitters (NYSE: AEO) will close 150 stores in North America during the next three years, including nearly 100 AE stores. The company is planning to close approximately 50 AE and 20 aerie stores in North America in 2014.
Beginning in 2015, the company anticipates annualized after-tax savings of approximately $10 million to $15 million related to these store closures.
The decision comes on the heels of disappointing results for the first quarter of fiscal 2014. Net income plummeted 86 percent to $3.87 million from $27.98 million, and total net revenue fell 5 percent to $646.13 million from $679.48 million. Same-store sales fell 10 percent. Story