US teen clothing retailer American Eagle Outfitters is to take over the operation of six stores in China and Hong Kong, which have been part of a licence agreement.

The company mutually agreed to terminate its licensing agreement with Dickson Concepts to support its long-term global expansion strategy.

"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," 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," Hanson added.

American Eagle Outfitters is expected to open its first owned and operated store in Mexico this month along with licensed stores in the Philippines.

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American Eagle Outfitters to Assume Operation of Six Existing Stores in China and Hong Kong; Exits License Agreement; Consistent with Company’s Long Term Global Growth Strategy

February 5, 2013

PITTSBURGH--(BUSINESS WIRE)--Feb. 4, 2013-- American Eagle Outfitters, Inc. (NYSE:AEO) today announced that it 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, Israeland the Middle East. American Eagle Outfitters currently has international presence in 13 countries and ships online to 77 countries.

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters® and Aerie® brands. The company operates more than 1,000 stores in North America, and ships to 77 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at approximately 50 international franchise stores in 13 countries. For more information, please visit www.ae.com.

 

Original source: http://ae.online-pressroom.com/releases/index.cfm?view=1781259&category=1&year=2013