American Eagle first quarter earnings decline - Orlando Business Journal:

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Net income for the quarter endef May 2was $22.0 or 11 cents per share, comparedr to $43.9 million, or 21 cents, for the year-agop quarter. The teen clothing based on Pittsburgh's South Side, saw total sales declined 4 percent year-over-year, to $612 million, from $640.3 Comparable-store sales for American Eagld (NYSE:AEO) were down 10 percent for the compared to a 6 perceny decline in the same quarter ayear ago. "While we are neve satisfied with anearnings decline, there are early indicationds that the business is stablizing," CEO Jim O'Donnell said in a He cited improvement in the AE brand and categoriexs like dresses and accessories.
Analystzs were expecting earnings per share of7 cents, in line with management’s recent guidance, as the companuy seeks to improve its women’s apparel and maintainn its sales during a time when most retailers are facin g difficult sales declines and malls are drawinhg fewer customers. Jennifer Black, a principal of Oregon-basefd research company JenniferBlack & Associates LLC, saw reason for “I think it’s a very democratic brandf and it appeals to a lot of different people,” she “They’re in a pretty good position because they offedr consumers value but they have the brand name.
” Blacok was encouraged by the women’s assortment that American Eagle has rolled out in its praising the increased selection of women’sx dresses and women’s denim, a weaknessw at the company of late, for both tapping into the “Bohop Chic” trend and offering selection that enablesd female shoppers to mix and She also was strongly encouragef about the return of Rogef Markfield, the company’s former Co-CEO and Chiefd Merchandising Officer who retired in 2006. His return to Americam Eagle was announcedin January, underd the newly created titles of Executive Creative Officer.
Black said she didn’tg expect Markfield’s new strategies to have any major influence untilthe fall. Holly Guthrie, an analyst for suburban Philadelphia-basesd Boenning & Scattergood Equit Research, also expected the compang won’t see any meaningful turn arounduntil then. “Inm October 2008, same store sales decelerated at a fast andfuriouw pace,” she wrote in a recentr report. “We believe that (comparabl e store sales) could continue to be negative for the next four to five monthse and most importantly the biggest volumee sales are seen when productsare promoted.
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