American Eagle exec says brand primed to capitalize on store closings

Teen-focused brand American Eagle, which also owns Aerie, reported a 6% increase in same-store sales for the fourth quarter of 2018 and 8% for the year overall on Wednesday. It also announced it would be opening more stores in 2019.

The news comes a week after Gap, JCPenney, and Victoria’s Secret announced more than 300 store closures over the course of 24 hours. Abercrombie & Fitch also announced Wednesday that it would be closing 40 stores and opening 40 new locations with less total square footage by year-end.

In a call with investors after announcing earnings, an American Eagle executive commented on the recent store closings, specifically Gap’s, saying that he saw this as an opportunity for the brand.

“I am excited by that,” he said, adding that denim has been a strong area of growth for American Eagle in 2018, a category in which it has considerable overlap with Gap.

“Let the disruption continue,” he added. He was quickly interrupted by CEO Jay Schottenstein.

On Thursday, Gap Inc. announced it would be splitting the company in two and closing 230 of its namesake brand’s stores over the next two years.

In an earnings call shortly after the announcement, Gap CEO Art Peck said the company would close up to 50% of its specialty fleet over the next few years. Specialty stores are defined as any Gap store excluding its outlet and factory locations.

Peck said most of these closures will occur in the US and will leave the brand with “a smaller, but healthier specialty fleet.”

The Gap brand has struggled in recent years — same-store sales were down 5% in the fourth quarter of 2018 and overall for the year.

Source

more recommended stories

  • ‘Game of Thrones’ Isaac Hempstead Wright defends finale, Bran’s story line

    “Game of Thrones” star Isaac Hempstead.

  • Trump speaks out against parts of extreme anti-abortion laws

    President Donald Trump has distanced himself.

  • Alexandria Ocasio-Cortez Wonder Woman comic cover upsets DC Comics

    She’s a 29 year-old congresswoman who.

  • Google suspended some business with Huawei after Trump blacklist

    NEW YORK (Reuters) – Alphabet Inc’s.

  • OnePlus 6T review: Why it’s better than expensive flagship phones

    The OnePlus 6T runs on the.

  • Tony Robbins recorded telling woman she was ‘lying’ about abuse

    According to an investigation from BuzzFeed.

  • Adidas is releasing another pair of ‘Game of Thrones’ sneakers

    Following up on their hit UltraBOOST.

  • How to make people like you immediately

    According to the “mere-exposure effect,” people.

  • Fifth grader who told classmates to stop doing the Nazi salute was pulled out of class

    An elementary school in Tennessee will.

  • Scientists develop light-activated bio-glue that could seal fatal wounds in seconds

    A new ‘biological glue’ developed by.

  • Joshua Jones speaks out after helping disarm STEM School Highlands Ranch shooter

    One of three students who helped.

  • Helicopter crashes into New York’s Hudson River

    A helicopter has crashed into the.

  • Apple’s Supreme Court loss could harm its App Store business

    Thanks to the Supreme Court, Apple.

  • How to allow pop-ups in Google Chrome from all sites or specific ones

    Pop-ups can be the scourge of.

  • Uber’s CEO sent an email to employees addressing its disastrous IPO, drawing on Amazon’s and Facebook’s rough starts (UBER)

    Getty/Spencer Platt Uber CEO Dara Khosrowshahi.

  • Watch Winnie the Pooh meet the royal family in a new video

    Disney is celebrating the birth of.

  • Times celebrities got accused of lip syncing

    One of the most legendary instances.

  • Uber CEO Dara Khosrowshahi is part of a family of impressive techies

    Led by CEO Dara Khosrowshahi, ride-sharing.

  • All the food Miss USA typically eats in a day

    On May 2, Cheslie Kryst was.

  • Where do billionaires live? Top 15 cities for billionaires worldwide

    Billionaires are increasingly becoming concentrated in.

  • House Democrats overplayed their hand to get the full Mueller report

    The war between the White House.

  • How to use Google Maps offline

    Where would we be without Google.

  • Anna Delvey: Fake heiress sentenced to prison for up to 12 years

    Socialite scammer Anna Delvey was sentenced.

  • Here’s everything the US military is sending to take on Iran

    The US military is sending a.

  • Advertising and Media Insider newsletter May 8

    The Amazon office in New York..

  • Trump’s tax info show his businesses lost so much money over a decade

    President Donald Trump’s tax information covering.

  • Bloody Israel-Gaza attacks signal a violent resurgence

    Deadly violence between Israel and Gaza.

  • Trump threatens 25% tariff, escalate China trade war

    President Donald Trump on Sunday threatened.

  • Plane makes emergency landing at Moscow airport, busts into flames

    41 people were killed after an.

  • Brunei says it 'will not enforce gay death penalty after global backlash'

    Brunei’s Sultan Hassanal Bolkiah has said.

  • New York City Mayor Bill de Blasio 2020 bid, negative favorability

    New York City Mayor Bill de.

  • A Tesla Model S caught fire in a San Francisco garage

    A Tesla Model S sedan caught.