Fox Group Exits American Eagle European Venture in $2 Million Deal
Fox Group has signed a non-binding agreement to sell its 49% stake in its European joint venture with American Eagle for $2 million, exiting the Dutch market after mounting losses.
Fox Group, led by Harel Wiesel, is preparing to end its joint venture with American Eagle Outfitters in Europe through AEO Europe Retail Co. B.V., known as American Eagle Netherlands.
Fox reported on Wednesday that it has signed a non-binding term sheet to sell its entire 49% stake in the joint venture back to American Eagle for $2 million. Upon completion of the transaction, expected in the fourth quarter, the American company will hold 100% of the venture.
The partnership between Fox and American Eagle was established in 2022 to sell the fashion giant's brands in Europe, with the American company holding 51% and Fox holding the remaining 49%. Sharon Biton was appointed CEO of American Eagle's European operations at the time.
The joint venture initially aimed to operate in several countries across Western and Eastern Europe, with subsequent plans for expansion into additional European territories and potentially outside Europe. Currently, the joint venture operates five stores in the Netherlands and an online e-commerce website. Fox explained that the decision to sell stems from the fact that the joint venture's operations do not contribute to its financial results.
This exit comes after the European expansion remained significantly scaled back from original plans, which envisioned nine stores in the Netherlands. At its peak, the venture operated only six stores, and one has since been closed. According to 2025 financial reports, the operations lost approximately 18 million shekels, with Fox's share of the losses amounting to about half that sum.
The move also coincides with a challenging period for American Eagle itself. Earlier this month, the company's stock plummeted by about 11% after issuing a forecast for flat gross margins, driven by high inventory levels and weakness in its core brand. Inventory costs rose by 14%, partly due to tariffs, while rapid shifts in consumer preferences within the denim sector forced the company to increase promotions and discounts.
