American Eagle Outfitters poised to snap up share from Gap and Victoria’s Secret parent L Brands

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American Eagle Outfitters poised to snap up share from Gap and Victoria’s Secret parent L Brands
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As Gap and Victoria's Secret stores close, more American Eagle and Aerie shops will open.

American Eagle Outfitters Inc. is adding new stores and refurbishing existing ones, setting itself up for growth at the expense of the competition, analysts say.

American Eagle says it opened 24 stores in the third quarter and expects to open 60 Aerie stores this year. Aerie is the American Eagle underwear label that is challenging Victoria’s Secret for sales. Chief Executive Jay Schottenstein said there was softness in men’s and women’s shirts during the quarter, which led to markdowns, which have continued into the fourth quarter.Even with these issues, Neil Saunders, managing director at GlobalData Retail, is bullish about American Eagle and Aerie.

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