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By
Reuters
Published
Jul 3, 2012
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American Eagle sees $35-$50 million loss from kids brand exit

By
Reuters
Published
Jul 3, 2012

American Eagle Outfitters Inc said it expects to incur an after-tax loss of $35 million to $50 million related to the disposal of its children's brand, 77kids.


Photo: American Eagle


The apparel retailer had said in May it was exploring options, including an effort to sell the money-losing chain, which includes 22 stores and an online business.

The loss would include $25 million to $38 million in charges related to the closing and $10 million to $12 million in operational costs during the exit period, the company said in an SEC filing.

The company will take the losses primarily in the second and third quarters.

Shares of the company closed at $19.73 on Friday on the New York Stock Exchange.

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