American Eagle to Add Aerie Stores, Downsize Namesake Chain

American Eagle Outfitters Inc. (Pittsburgh) has unveiled plans to open about 40 Aerie and Offline stores this year, while also closing 25 of its namesake brand locales and remodeling 80-plus members of that chain. The specialty apparel retailer disclosed those numbers in an earnings call with analysts that took place after the retailer released its second quarter earnings for the period ended May 2.

Those results had the company reporting net revenues of $1.2 billion, up 10% from the same period a year earlier, with sales at its flagship brand down 2% and those of its Aerie intimate apparel unit up a record 25%.

“This most recent quarter reflected the strength of our portfolio and the power of Aerie,” said AEO Executive Chairman and CEO Jay Schottenstein. “Driven by compelling product assortments and a deep emotional connection with customers, the brand achieved exceptional multi-channel growth and profitability, further amplified by the continued relevance of the ‘100% Aerie REAL’ campaign. While results at American Eagle were mixed, our teams are moving decisively to reignite the women’s business and strengthen product execution and brand positioning.”

Aerie was launched as an AEO sub-brand in early 2006, first as a department within some of the chain’s existing stores with the opening of its first freestanding locale coming later that same year. At the end of AEO’s last reporting period, Aerie has 335 stores and $480.8 million in quarterly sales, while its namesake banner’s 804 stores brought in $678.5 million.