|11 July, 2019

American Eagle to start selling cannabis-based products this year

Apparel retailer will sell CBD-infused lotions, muscle balms and aromatherapy products developed and supplied by Green Growth Brands Inc

Shoppers enter the American Eagle Outfitters store in Broomfield, Colorado August 20, 2014. American Eagle Outfitters was a bright spot in the retail sector Wednesday after the teen-oriented chain's second-quarter results beat expectations and forecasts for third-quarter earnings were in line with the current estimate. Its stock jumped 12 percent to $12.98. REUTERS/Rick Wilking

Shoppers enter the American Eagle Outfitters store in Broomfield, Colorado August 20, 2014. American Eagle Outfitters was a bright spot in the retail sector Wednesday after the teen-oriented chain's second-quarter results beat expectations and forecasts for third-quarter earnings were in line with the current estimate. Its stock jumped 12 percent to $12.98. REUTERS/Rick Wilking

Reuters/Rick Wilking

American Eagle Outfitters Inc will start selling cannabidiol (CBD)-infused personal care products in the United States later this year, entering a fast-growing market for daily consumer goods made with cannabis derivatives.

The apparel retailer will sell CBD-infused lotions, muscle balms and aromatherapy products developed and supplied by Green Growth Brands Inc, the Toronto-headquartered cannabis company said on Thursday.

The market for cannabis-based personal care is already crowded. French luxury goods maker LVMH's Sephora beauty chain has been selling CBD-infused products since 2018 and ULTA Beauty Inc launched sales of similar products earlier this year.

Green Growth said American Eagle is expected to start sales of the products in nearly 500 stores and online in October.

This is the third major wholesale deal for Green Growth since the passage of the U.S. farm bill in December. It legalized the cultivation and sale of hemp, a cannabis plant different from marijuana.

CBD, which is derived from hemp, is a non-psychoactive chemical found in cannabis plants that is reputed to ease anxiety and other ills without causing a high.

(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila) ((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223 8780, outside U.S. +91 720 478 6795; Reuters Messaging: UdaySampath.Kumar.thomsonreuters.com@reuters.net))

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