The formal closure of American Eagle Outfitters’ Tmall store has sparked rumors that the company is leaving the Chinese market.
The American shop recently announced on its official WeChat account that the brand is taking a “temporary break.” On its official website, Chinese customers can still buy American Eagle and Aerie products, but it appears that all orders will be transported from the United States.
The company was established in 1977 by Jerry and Mark Silverman. Its portfolio of brands currently includes Todd Snyder, American Eagle, Aerie, Offline by Aerie, American Eagle, and AE77. In its most recent first-quarter earnings report, profits were $31.7 million, down from $95.4 million a year earlier due to higher supply chain expenses, increased inventory, and inflationary pressures.