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American Eagle Abandons Quiet Logistics Experiment After $360M Bet
Yahoo Finance· 2026-01-28 20:45
Core Insights - American Eagle Outfitters (AEO) is discontinuing its third-party logistics operations by shutting down its Quiet Logistics division, which was acquired for approximately $360 million over four years ago [1][2]. Group 1: Acquisition and Operations - The acquisition aimed to bring AEO's supply chain in-house, allowing for next-day and same-day delivery for its brands and third-party merchants [2]. - AEO had previously acquired AirTerra to enhance its delivery and fulfillment capabilities, which were integrated into the Quiet Logistics business [2]. Group 2: Future Plans and Impact - The company plans to cease Quiet services for third-party customers in the coming months and will close fulfillment centers in Boston and Dallas by the first half of 2026, while keeping the Atlanta center operational for AEO's distribution needs [3]. - AEO's spokesperson indicated that this strategic decision will allow the company to focus on growth and its portfolio of lifestyle brands, while also assisting current customers in transitioning to new providers [4]. Group 3: Initial Success and Challenges - The collaboration initially provided promising services, including a national delivery network and a universal delivery label for shipping across 40 carrier networks [5]. - Despite early successes, the strategic shift indicates challenges in maintaining the logistics operations as initially envisioned [4].