American Eagle Earnings Plunge
American Eagle (NYSE:AEO) reported sharply lower earnings in its last quarter, though the teen clothing retailer performed well on revenues, up 14 percent, bolstered by booming online sales and same-store sales that were up 10 percent.
Earnings came in at $51 million, much lower than the $87 million brought in during the year-ago period, but matched analysts’ expectations. Once-off charges such as store impairment costs and transition costs related new CEO Robert Hanson pressured earnings per share by 9 cents.
In guarded guidance the retailer states that it expects “modest sales increase with fewer markdowns.” The company’s main rivals are Abercrombie & Fitch (NYSE:ANF), Gap (NYSE:GPS), Urban Outfitters (NASDAQ:URBN), and Aeropostale (NYSE:ARO).
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