American Eagle is preparing to boost its omni-channel operations as it prepares to even out its fleet of stores.
Executives stated that the group’s buy online, ship-from-store facility is currently available in 255 stores and they intend adding the facility to more stores in preparation for the holidays. The same-store sales for Q2 2014 declined by 7% nationally, along with a 7% decrease which was experienced 12 months ago. Based on brands, the group’s same-store sales fell by 8%, however its Aerie division, which is focused on lingerie, showed an increase of 9% in same-store sales.
Both divisions saw a fall in transaction quantity and average value during Q2 2014. CFO, Mary Boland, said that regardless of the sales spiral, most of the stores are generating profits, with productivity of average sales reaching $400 per ft².
During the last quarter, the company had plans to shut down 50 Aerie and 100 American Eagle stores over the next three years, with a focus on B and C mall stores which had posted around $250 in yearly square foot sales.
The company has plans to close 27 stand-alone Aerie stores this year, but has plans to open 29 Aerie stores next door to its American Eagle stores. According to the CFO, this type of store appears to have an increased 30% better performance rate than stand-alone stores. Factory outlet American Eagle stores are performing very well, with an average $600 per ft² in yearly sales and profits of 25% more than the average for the company. Ten factory outlets were opened by the company during this year.
25 AUGUST 2014, USA