The international expansion plans of leading fashion retailer, American Eagle Outfitters Inc. (AEO), continue to gain pace as it takes another step forward towards growing internationally, after making its presence felt in Israel, Japan and the Middle East. The company now targets to capture the strong and promising Philippines market.
Yesterday, American Eagle entered into a multi-year retail license agreement with the Suyen Corporation, a retailer and franchisee that has a large customer base and operates numerous stores for various brands in Philippines. Suyen has about 744 variety stores as well as 126 franchised stores in the country.
Per the deal, Suyen will open both American Eagle stores as well as Aerie shops within existing stores throughout the country. The company expects to inaugurate its first Philippines store in spring 2013.
American Eagle envisions immense potential for business expansion in Philippines, given its growing economy and the demand for popular fashion and American brands among Filipino customers.
In an effort to increase its international presence, American Eagle had opened stores in Israel and Japan earlier this year. Additionally, the company strengthened its footprint in the Middle East by expanding the scope of its business that was launched in 2010.
Looking ahead, the company expects to bolster its presence in about 13 international locations by the end of 2012. The company also targets shipping to 77 international countries by year-end 2012.
Headquartered in Pittsburgh, Pennsylvania, American Eagle is a leading retailer that operates under the American Eagle Outfitters, 'aerie' and 77Kids brands. The offerings of the company's core American Eagle Outfitters brand include jeans, cargo pants, and graphic T-shirts, as well as a collection of accessories, outerwear, and footwear for people within the ages of 15 to 25.
American Eagle, which competes with Abercrombie & Fitch Co. (ANF) and Gap Inc. (GPS), carries a Zacks #2 Rank, translating into short-term Buy rating for the next 1-3 months. Moreover, we maintain our long-term Outperform recommendation on the stock.
AMER EAGLE OUTF (AEO): Free Stock Analysis Report
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