American Eagle Flies Into Israel - Analyst Blog
February 01 2012 - 11:40AM
Zacks
Pittsburgh-based fashion retailer American Eagle
Outfitters Inc.’s (AEO) latest international venture of
store openings is in Israel. Yesterday, the company announced that
it will open its first Israeli retail outlet at the Ramat Aviv Mall
in Tel Aviv.
Following the first store opening on February 2, American Eagle
plans to open 10 more stores at various locations in Israel within
the next month. These stores are slated to come up at the popular
malls in Tel Aviv, Hafia, Beer Sheva, Kiryat Ono, Ra’anna, Rishon
Lezion and Netanya. As per the company, its stores in Israel or
anywhere in the world will feature product assortment as available
at its U.S. stores.
American Eagle has partnered with a leading Israeli retailer and
wholesaler, Fox-Wizel Ltd., under a franchise arrangement, to
operate the stores in the region.
American Eagle has been successfully executing on its plan to
expand internationally over the past three years. Over these years,
the company has opened about 21 franchise stores in 10 countries
including Russia, China, Hong Kong and various cities throughout
the Middle East. Further, the company’s first store in Japan is
expected to go live shortly.
American Eagle has been a popular international brand due to the
company’s e-commerce site, which ships across national borders
since 2004. Currently, the company ships products to nearly 77
countries, with Italy being the latest addition.
American Eagle together with its subsidiaries engage in the
design and marketing of casual clothing. The company has a strong
portfolio of well-established brands, each of which is focused on
the unique characteristics and rapidly changing preferences of its
customers.
The company operates in a highly fragmented specialty retail
sector and faces intense competition from other teenage-focused
retailers, such as Abercrombie & Fitch Co.
(ANF) and Gap Inc. (GPS).
We currently have a short-term Zacks #3 Rank (Hold) and a
long-term Outperform recommendation on the stock.
AMER EAGLE OUTF (AEO): Free Stock Analysis Report
ABERCROMBIE (ANF): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
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