American Eagle Outfitters takes over ownership of Chinese stores
PITTSBURGH — American Eagle Outfitters has agreed to a mutual termination of its license agreement in China, Hong Kong and surrounding markets with Dickson Concepts (International) Limited. Consistent with its long-term global expansion strategy and the importance of this market, the company took the opportunity to exit its agreement and will assume operation of six existing stores in China and Hong Kong.
“As we look toward future global expansion, Greater China presents an important growth market with sizeable economic potential, where a company-owned model is preferred for our brands. We thank Dickson Poon and his team for their contributions these past few years," said CEO, Robert Hanson. “Our global expansion plans include a blend of company-owned stores, joint ventures and licensed agreements. We believe this approach will provide the very best brand and product driven omni-channel customer experience, while also providing strong returns to our shareholders.”
American Eagle Outfitters will be opening company-owned stores in Mexico and licensed stores in the Philippines beginning this month, and has successfully licensed stores in Japan, Russia, Eastern Europe, Israel and the Middle East. American Eagle Outfitters currently has international presence in 13 countries and ships online to 77 countries.