Apparel / Textiles & Accessories

Recently, American Eagle, an American fashion brand, has officially withdrawn from the Chinese market, and the brand’s online Tmall store has been closed on May 27.

American Eagle is a brand from the United States. It was established in 1977. The clothing mainly focuses on American casual style. It mainly sells denim series, outdoor leisure, T-shirts, accessories, shoes and boots, underwear and other products. It was once an undisputed super popular brand in the United States.

As a leading brand of American casual style, American Eagle combines the traditional spirit of American college with the latest fashion. Casual denim and trendy clothing are loved by many young people.

The products on American Eagle's official website include denim series, outdoor leisure, T-shirts, accessories, shoes and boots, underwear, etc. Because of its reasonable price and design, the products are popular among young people in North America, and many people in China choose to shop online on the official website. Product is very popular.

American Eagle announced its exit from the UK market in 2017, followed by Japan in 2019. As early as many years ago on Omotesando in Tokyo, American Eagle became one of the must-see brands in Japan at that time.

In the first quarter ended April 30, American Eagle's sales fell 6% to $686 million, and its quarterly results fell short of analysts' expectations.

Shares of American Eagle have plunged 48.3% this year, according to a Morgan Stanley analysis, but the stock is set to fall further.

Analysts at the agency downgraded the retail stock to underweight from hold, citing risks to the company's profit margins and sales. Morgan Stanley's analysis shows that the brand's operating income growth is at increased risk, with significant risks to profit margins and earnings per share in 2022, making it likely that it will miss even management's lowered financial targets for 2022. Additionally, the company's management has yet to downgrade its optimistic 2023 financial targets, which seems to suggest that downside risks to the company's earnings could extend into next year.

Analysts say AEO's missteps, compared to other retailers like Macy's, may be the result of product execution and poor planning, rather than macro issues.