American Eagle Outfitter's
per-share earnings fell 21% on slow sales, the teen clothing retailer reported Thursday.
In its quarter ended Aug. 2, American Eagle earned $8.1 million, or 11 cents a share. In the year-ago period, the fashion chain earned $10.1 million, or 14 cents a share.
Overall sales at American Eagle increased 5.6% to $337.06 million from the same period a year ago. But the company posted another quarterly decline in same-store sales, which compare results at like outlets open more than a year. Such sales fell 5.5%.
Despite the earnings and same-store sales decline, the clothing chain met Wall Street's expectations and its quarterly guidance. Analysts surveyed by Thomson First Call were expecting the company to earn 11 cents a share on $337.06 million in sales. Meanwhile, the company had projected that it would earn 10 cents to 11 cents a share.
The drop in comparable-store sales appears to be accelerating at the company. In the first part of the third quarter, American Eagle's same-store sales have fallen by 8%, and the company expects a similar decline for the entire quarter.
American Eagle did not immediately give third-quarter earnings guidance. Analysts are calling for earnings of 38 cents a share on $405.8 million in revenue.