Fox Group Exits American Eagle's European Operations After $8 Million Loss

Fox Group is divesting its 49% stake in the joint venture responsible for American Eagle's European operations, just four years after its establishment. The Israeli retail conglomerate announced it will sell its share to the global American Eagle brand for a mere $2 million, following sustained losses from the venture. Fox stated the sale is due to the joint operation's "lack of contribution to its operational results." The transaction is expected to conclude in the fourth quarter of this year and is not anticipated to significantly impact Fox's overall financial performance.

The joint venture, formed in 2022, aimed to expand the American Eagle brand across Europe through physical stores, online platforms, wholesale, and sub-licensing. Initially, both partners committed up to $20 million in investment. Fox alone invested approximately 33 million shekels (around $8.8 million) in the European venture since its inception. This included 9.6 million shekels in 2022, 5 million shekels in 2023, over 15 million shekels in 2024-2025, and an additional 3.4 million shekels in the first half of 2026.

The expansion efforts, which began with American Eagle and Aerie stores and an online presence in the Netherlands, ultimately failed to achieve profitability. The number of stores in the Netherlands has decreased from six at the end of 2024 to five currently. Fox reported significant losses from the European operation, including 9 million shekels in 2025, 8.8 million shekels in 2024, and 5.7 million shekels in 2023, in addition to a 1 million shekel loss in the founding year.

In contrast, Fox's operation of 55 American Eagle stores in Israel, including the Aerie and activewear lines under a franchise agreement since 2010, remains profitable. This is not Fox's first unsuccessful European venture; its subsidiary Retailors previously sold its stake in Foot Locker Europe due to losses.