American Eagle Outfitters delivers on European expansion promise

London --Challenged to grow in the U.S., teen apparel chain American Eagle Outfitters is making good on its pledge to leverage the overseas market to kickstart expansion.



Earlier this year, AEO said it would begin a Western European rollout with three stores in London, after a decade of eying the UK as a potential launchpad for overseas expansion. “We are focused on profitably scaling our international growth and believe that American Eagle Outfitters will have great traction in the UK,” Simon Nankervis, executive VP, Americas & Global Country Licensing at American Eagle Outfitters, said last summer. “One store will be in Kent, while the two others will be in London.”



On Thursday, AEO confirmed it would open the trio of London stores within the next week. The London stores are located in two Westfield malls and the Kent outpost is in Bluewater Mall.



These will be the first in Europe to be owned and operated by American Eagle, although the retailer does license some outlets in Russia and Poland.



“This is the start of what we believe to be a much bigger opportunity,” said Nankervis told the Wall Street Journal.



The chain has focused on international growth for several years. In 2012, it licensed stores in Japan, Israel and Poland, and in 2013 it opened its first company-owned and -operated store in Mexico City, as well as franchise stores in the Philippines.



An uphill battle in the U.S. has prompted AEO to look elsewhere for growth. In the last two years, sales have been dismal, executive turnover high, and significant store closures imminent. In fact, in May, the company announced it could close as many as 150 stores in North America over a three-year period. More recently, there have been signs of some improvement; AEO has boosted earnings guidance for the upcoming holiday period.