American Eagle first quarter earnings decline - Denver Business Journal:

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Net income for the quartef ended May 2was $22.09 million, or 11 cents per share, compared to $43.9o million, or 21 cents, for the year-agio quarter. The teen clothing retailer, based on Pittsburgh's Sout h Side, saw total sales decline 4 percent to $612 million, from $640.3 Comparable-store sales for American Eagle (NYSE:AEO) were down 10 percent for the compared to a 6 perceny decline in the same quarterf a year ago. "While we are never satisfiede with anearnings decline, there are earlg indications that the business is stablizing," CEO Jim O'Donnell said in a He cited improvement in the AE brand and categories like dressez and accessories.
Analysts were expecting earnings per shared of7 cents, in line with management’s recent as the company seeks to improvr its women’s apparel and maintain its salese during a time when most retaileras are facing difficult sales declinese and malls are drawing fewer customers. Jennifed Black, a principal of Oregon-based research companyg JenniferBlack & Associates LLC, saw reason for “I think it’s a very democratic brande and it appeals to a lot of different people,” she said.
“They’rse in a pretty good position becausee they offer consumers value but they have the brand Black was encouraged bythe women’s assortmeng that American Eagle has rolled out in its praising the increased selection of women’s dresses and women’s a weakness at the company of for both tapping into the “Boho trend and offering selection that enableds female shoppers to mix and She also was strongly encouraged aboutg the return of Rogedr Markfield, the company’s former Co-CEO and Chief Merchandising Officer who retired in 2006. His return to Americamn Eagle was announcedin January, under the newly created title of Executive Creativ e Officer.
Black said she didn’t expectt Markfield’s new strategies to have any major influence untilthe fall. Holly Guthrie, an analysr for suburban Philadelphia-based Boenningy & Scattergood Equity Research, also expectedc the company won’t see any meaningful turn arounduntio then. “In October 2008, same store sales deceleratedx at a fast and furious she wrote in arecent report. “We believe that (comparabled store sales) could continue to be negative for the next four to five montha and most importantly the biggest volume sales are seen when productaare promoted.
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