The Wall Street Journalreports that American Eagle may close its Martin + Osa stores. The WSJ says the decision on whether or not to close down the stores will come next month when American Eagle reports its fourth quarter earnings. Martin + Osa's sales could be drag on American Eagle's fourth quarter earnings.
Martin + Osa is depressing American Eagle's bottom line as the concept stores, meant to appeal to 28- to 40-year-olds, lost its president late last year and American Eagle Chief Executive Jim O'Donnell was a bit non-committal about the stores' future at a recent industry gathering.
The stores are making progress, with design and production processes having improved, Mr. O'Donnell told attendees at an industry conference on Jan. 13. "It is also important that we continue to differentiate the Martin + Osa brand within the competitive landscape as well as create an emotional connection with the customers."
But Mr. O'Donnell implied the money-losing unit may not yet have achieved its goal, saying, "We are still evaluating our plans and we'll provide additional information...during our fourth quarter earnings call."
A report in DDi magazine first suggested American Eagle may close its 28 Martin + Osa stores. There is also a report here in the Pittsburgh Post-Gazette. Martin + Osa President Laura Dubin-Wander recently left the company, which has fueled speculation that the stores could soon close.
The Wall Street Journal 
