American Eagle Outfitters (NYSE:AEO) plans to further expand its presence in South America. The teen apparel retailer will open several stores in Chile and Peru as it builds on existing growth markets in the region, including those in Colombia, Panama and the Caribbean, through licensing agreements.
The company has signed a multi-year license agreement with Eurofashion Limitada, a Chilean company and a division of the Cencosud S.A. Group. American Eagle will also open company-owned stores in Mexico.
The American Eagle Outfitters stores slated for opening will offer both name brand and Aerie assortments. The first stores are expected to open in Chile in the third quarter and in Peru in early 2016.
"We are excited to further expand our presence in South America, and we believe our heritage of casual American style will resonate strongly in these dynamic markets," said Simon Nankervis, executive VP, global commercial business, American Eagle. "We are pleased to partner with Eurofashion Limitada, which brings exceptional operational experience and a vast knowledge of the local consumer base."
American Eagle currently has 102 licensed stores in 17 countries, including the United Arab Emirates, Kuwait, Russian Federation, Kingdom of Saudi Arabia, Lebanon, Jordan, Morocco, Egypt, Israel, Japan, Poland, the Philippines, Colombia, Panama, Thailand and Indonesia. The brand plans to open about 40 licensed stores in 2015.
Last spring the company announced it would close 150 North American stores over the course of three years after same-store sales fell 10 percent and revenue dropped 5 percent in the first quarter of 2014.
-See this American Eagle press release
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