American Eagle Outfitters (AEO), the popular apparel retailer based in Pittsburgh, has revealed its plans to acquire Quiet Logistics, Inc., its long-time fulfillment partner. This strategic move, along with other investments, will be executed at a cash sum of $350 million, as part of AEO’s continuous efforts to transform its supply chain.

Quiet Logistics is renowned for its cutting-edge technology and robotics that enable efficient fulfillment services for AEO and various other consumer brands. Through its network of fulfillment centers in major cities such as Boston, Chicago, Los Angeles, Dallas, St. Louis, and Jacksonville, the company specializes in providing same-day and next-day delivery options for customers and stores alike.

By acquiring Quiet Logistics, AEO not only aims to support its own growth but also expand the customer base of the fulfillment partner to include more brands and retailers. Michael Rempell, AEO’s COO, expressed that the Quiet Logistics team shares a vision for an asset-light, technology-driven supply chain network, bringing invaluable expertise to the company. The acquisition will solidify the successful partnership, offer operational control and flexibility, and accelerate the growth of Quiet Logistics.

The deal is expected to be finalized by the end of the year, making Quiet Logistics a wholly-owned subsidiary of AEO. However, Quiet will continue to operate independently. AEO predicts that the transaction will positively impact its financials within the first year after the completion of the acquisition.

Jay Schottenstein, AEO’s executive chairman and CEO, emphasized the significance of transforming the company’s supply chain to enhance agility, speed, and diversification. AEO aims to establish an on-demand, hyper-scaled operations platform to facilitate brand success. Schottenstein acknowledged that Quiet Logistics has already brought significant benefits to AEO in the past year, and the company intends to leverage its strong cash position to continue reaping advantages in the future.

In the second quarter of 2021, AEO reported a revenue of $1.19 billion, representing a 35% increase compared to the same period the previous year. The quarterly net income stood at $121.5 million. However, for the first half of the fiscal year, the company incurred a loss of $13.8 million on revenues of $883.5 million.

Operating under the American Eagle and Aerie banners, American Eagle Outfitters operates numerous stores in the United States, Canada, Mexico, and Hong Kong. Furthermore, it caters to customers in 81 countries worldwide through its e-commerce platforms.

Useful links:
1. American Eagle Outfitters Official Website
2. Quiet Logistics Official Website