American Eagle Outfitters, Inc. AEO shares traded higher on Thursday. The company reportedly sued Amazon.com, Inc. AMZN for trademark infringement and filed a complaint in Manhattan federal court.
The company alleges that Amazon used its Aerie clothing line branding in search results, misleading consumers to “inferior quality knock-offs,” reported Reuters.
As per the report, the company seeks triple the actual damages, punitive damages, and an injunction to stop further infringements, along with additional remedies.
Notably, as per CNBC, American Eagle clarified that it did not authorize Amazon to sell products from its Aerie line, which includes yoga pants, lingerie, loungewear, and other apparel. The company further added that they declined Amazon’s request for the rights to sell Aerie products on its platform.
CNBC further added that the complaint states that, “These ads are intended to (and do) trick customers into thinking that by clicking the provided link, they will be able to ‘Shop Aerie’ or ‘Save on Offline by Aerie’ on the ‘Official Amazon Site.'”
“These statements are patently false because customers cannot shop for Aerie products on Amazon.”
Last month, American Eagle Outfitters reported second-quarter adjusted EPS of $0.39, beating the analyst consensus of $0.38. Revenues rose 8% Y/Y to $1.29 billion, missing the street view of $1.31 billion.
Price Action: American Eagle shares are up 1.69% at $21.04 at the last check
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