American Eagle TO START OUT Selling Cannabis-based Balms, Lotions This..

July 11 (Reuters) – American Eagle Outfitters Inc. begins selling cannabidiol (CBD) -infused personal maintenance systems in the United States later this year, entering a market that has seen flourishing demand among the clothing retailer’s core youthful customers. The retailer will sell CBD-infused creams, muscle balms, and aromatherapy products developed and supplied by Green Growth Brands Inc., the Toronto-headquartered cannabis company said on Thursday.

The products will appeal directly to American Eagle’s mainly millennial audience as they view CBD as another big development in lifestyle focused on health, analysts informed Reuters. CBD is a non-psychoactive chemical within the cannabis plant life that is known to ease panic and other ills without causing a high.

Jane Hali & Associates analyst Jessica Ramirez said. The market for cannabis-based personal care products gets congested progressively, with a number of companies including French luxury goods machine LVMH’s Sephora beauty string and ULTA Beauty Inc already offering such products. However, the regulatory environment around CBD products continues to be cloudy, numerous major merchants refusing to stock items made out of the cannabis derivative until it is manufactured legal at the federal government level.

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Companies such as American Eagle must tread carefully credited to a possible risk of a crackdown on the cannabis industry by the federal government, A relative collection Partners analyst Gabriela Santaniello said. That has not stopped cannabis companies from developing their products and finding new retail partners as demand is growing. This is actually the third major wholesale deal for Green Growth since the passing of the U.S. December that legalized the cultivation and sale of hemp, a cannabis herb different from marijuana. Green Growth said American Eagle is expecting to begin sales of the merchandise in almost 500 stores and on its website in October. The addition of CBD products on American Eagle’s store shelves could generate curious youthful customers, Santaniello said. American Eagle stocks have dropped 14% this season due to a disappointing profit forecast in March and trade tensions weighing on the retail sector.

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