Recently, the American fashion brand American Eagle has officially withdrawn from the Chinese market. The brand’s online Tmall store has been closed on May 27.
American Eagle is a brand from the United States. It was founded in 1977. Its clothing focuses on American casual style. It mainly sells denim series, outdoor leisure, T-shirts, accessories, shoes, underwear and other products. It was once an undisputed American super popular brand.
As a leading brand of American casual style, American Eagle combines the traditional spirit of American college with the latest fashion. The brand insists on providing consumers with comfortable, fashionable, high-quality casual clothing suitable for various occasions, and is committed to providing customers between the ages of 15 and 25. Casual jeans and trendy clothing are loved by many young people.
The products on the American Eagle official website include denim series, outdoor leisure, T-shirts, accessories, shoes, underwear, etc. Because of its reasonable prices and well-designed products, it is very popular among young people in North America. Many people in China also choose to shop overseas on the official website. The product is very popular.
American Eagle announced its withdrawal from the British market in 2017, and then announced its withdrawal from Japan in 2019. Since its debut on Omotesando in Tokyo many years ago, American Eagle has become one of the must-visit brands in Japan.
In the first quarter ended April 30, American Eagle’s sales fell 6% to US$686 million, and its quarterly results did not meet analysts’ expectations.
According to a Morgan Stanley analysis report, American Eagle’s stock price has plummeted 48.3% this year, but the stock will fall further in the future.
Analysts at the agency downgraded the retail stock to underweight from hold, citing risks to the company’s margins and sales. Morgan Stanley’s analysis shows that the brand’s operating income growth risks have increased, and its profit margins and earnings per share are facing significant risks in 2022, which makes it possible that it will not be able to achieve even the 2022 financial targets after management’s downgrade. Furthermore, the company’s management has yet to cut its optimistic 2023 financial targets, which seems to indicate that downside risks to the company’s earnings may extend into next year.
Analysts said that compared with other retailers such as Macy’s, AEO’s missteps may be caused by product execution and poor planning, rather than macro issues.
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