US teen clothing retailer American Eagle Outfitters has said that it now expects to incur an after-tax loss of US$35-50m from the exit of its 77kids by American Eagle business.

It said the losses will include $25-28m in closing related charges and $10-12m in operational costs. The closing related charges are expected to comprise $7-19m in store transition and lease-related payments, $3-4m of severance and employee related costs, and $15m of non-cash asset impairment charges and inventory write downs.

In May, the retailer said it would sell part or all of the loss making business. It operates 22 stores and an e-commerce site.