- Prachi Singh
American Eagle Outfitters, Inc. (AEO) is temporarily closing all of its American Eagle and Aerie stores in the United States and Canada as of the end of the day on March 17, 2020. The company said in a statement that this was in response to the continued spread of COVID-19 and advice from government and public health officials. The company added that the closings will remain in place until March 27, 2020 at least and that all of the store associates will be paid for the expected duration during this period.
“We have made the decision to temporarily close our American Eagle and Aerie stores to ensure that we are doing our part to protect our communities,” said Jay Schottenstein, executive chairman and chief executive officer of the company, adding, I recognize the days ahead will be difficult, but we remain faithful to the very heart of our objective: optimism. “
Through the AEO Foundation, the company has created a relief fund to provide additional assistance to associates affected by COVID-19. In addition, AEO has announced that it is withdrawing the first quarter 2020 guidelines released on March 4, 2020, as management expects the store closings and the impact of COVID-19 to have a material adverse impact on financial results. The company expected comparable sales increases in the single-digit low figures and EPS, between around 20 cents and 22 cents.
Photo: American Eagle Outfitters Press Room