Fashion giant closes dozens of branches and takes an unusual financial step
Against the backdrop of closing branches and logistics centers, American fashion giant American Eagle Outfitters sold rights to federal customs refunds at a discount to secure immediate cash.
Fashion giant American Eagle Outfitters has taken an unusual financial move: the company decided to sell the rights to federal customs refunds from the government at a significant discount to bring immediate cash into its coffers.
As part of this, the company submitted requests for customs refunds totaling approximately 190 million dollars and sold refund claims worth 68.9 million dollars for 18.6 million dollars in cash.
Reduction of branches and closing of logistics centers
The financial move comes in parallel with a broad efficiency program in which the chain is closing 35 branches across the United States.
In addition to closing stores, American Eagle is reducing its logistics arm: the company will stop providing logistics services to third parties and will close the operations of its distribution centers in Boston, Dallas, and La Palma, California, while the distribution center in Atlanta will continue to operate for the company's brands.
Recovery data
Since launching its recovery program, alongside the cuts and the sale of refunds at a discount, the company is showing signs of improvement. In the first quarter of 2026, the company recorded a 10% jump in revenues, which amounted to 1.2 billion dollars.
Sales in identical stores rose by 8%, while the underwear and leisure brand Aerie led the growth with a jump of 25%. Gross profit jumped by 41% to 456 million dollars, and the company maintains a stable cash balance of 103.3 million dollars alongside an available credit line.
