This cannabis company has just added another major retail partnership to its collection of brands it’s working with. Green Growth Brands (CSE: GGB) announced today that it had made a major agreement with a top U.S. retailer, American Eagle Outfitters (NYSE: AEO), in which AEO would sell hemp-derived CBD personal care products across it’s 500 separate American Eagle stores as well as online.
For Green Growth Brands, a company that already has a historic track record of making major retail partnerships, the announcement is another feather in its cap. The products in question, which were exclusively developed for American Eagle, include a number of personal care items like muscle balms, lotions, and aromatherapy oils. Sales are expected to begin sometime around October 2019, and all of Green Growth Brand’s CBD products are sourced from licensed, U.S. hemp processors.
“We are very pleased to be partnering with American Eagle, a leader in the specialty retail space,” said Green Growth Brands CEO, Peter Horvath, who is perhaps the only major cannabis CEO with a decade-long career in traditional retail before moving over to the cannabis sector. “GGB provided the expertise necessary to develop the product formulations and packaging to create a really special line of products.”
Green Growth Brands has stood out in the industry precisely because of its ability to secure these major partnerships. Earlier in the year, GGB made cannabis industry history when it announced a partnership with the largest small operator in the U.S. Since then, the cannabis company has continued to make a number of key retail agreements, with last month adding Abercrombie & Fitch and it’s 160 stores as another retailer that GGB is working with. Not to be outdone, American Eagle’s decision to work with GGB seems to be a move to not be outdone by its rival competitor.
Peculiarly enough, shares of GGB ended up falling by 5 percent on Thursday as investors seemed indifferent to the news. Most other marijuana stocks saw mixed performance as well today, with many major companies like Aurora Cannabis (TSE: ACB)(NYSE: ACB), Tilray (NASDAQ: TLRY), Cronos Group (NASDAQ: CRON), and Canopy Growth (TSE: WEED)(NYSE: CGC) all falling 2.8, 1.6, 0.9 and 3.9 percent respectively. Despite the fact that GGB has never been in a better position in terms of its partnerships, its stock has steadily declined over the past few months.
American Eagle Outfitters Company Profile
American Eagle Outfitters Inc is an apparel and accessory retailer with company stores throughout North America, China, Hong Kong, and the United Kingdom. The company leases all of its stores, and the vast majority of stores are in the United States. American Eagle also has an online business that ships worldwide. The company’s primary brand, American Eagle Outfitters, sells casual apparel and accessories that target 15- to 25-year-old men and women. Its Aerie brand sells intimates and personal-care products for women. Women’s items comprise the majority of the company’s sales. American Eagle designs its own merchandise and sources its production from third-party manufacturers that are mostly located outside of North America. – Warrior Trading News