This story has been updated to include stock price change.
NEW YORK (TheStreet) -- American Eagle (AEO) shares are plunging more than 9% after the teen retailer reported a tough third-quarter leading to a more cautious outlook for the rest of the year.
As expected, American Eagle reported adjusted earnings of 19 cents a share. The Pittsburgh-based company had said last month that it was upping its adjusted earnings guidance to 19 cents a share from 14 cents to 16 cents a share based on slightly better margins than previously expected.
On a GAAP basis, the company reported net income of $24.9 million, or 13 cents a share compared to $78.6 million, or 39 cents a share, in the year-earlier period. This year's quarter includes non-cash charges of 6 cents a share related to the company's previously disclosed plans to close a distribution center in Warrendale, Pa., as it opened up a new one in Hazelton, Pa.
The company had alerted investors last month that revenue declined 6% in the quarter to $857 million while comparable sales decreased 5%, which includes online sales.
Still shares were sinking 9.6% to $14.82 on Friday after the company said that it expects fourth-quarter earnings between 26 cents and 30 cents a share "based on a double-digit decline in comparable sales."
Analysts, according to Thomson Reuters, were expecting fourth-quarter earnings of 39 cents a share. American Eagle posted adjusted earnings of 55 cents a share in the year-earlier quarter.
American Eagle joins other teen retailers in reporting rough third quarters. Aeropostale (ARO) reported a larger-than-expected loss on Wednesday and said comparable sales plunged 15% in the quarter. Elsewhere, Abercrombie & Fitch (ANF) and Express (EXPR) are also suffering.