NEW YORK (TheStreet) -- American Eagle (AEO) is down 2.6% in trading Monday, one day before it is expected to release its fourth-quarter earnings report.
Though American Eagle had a better-than-expected fiscal third quarter with a 5.6% increase in revenue from third quarter 2012, the retailer expects a 7% decline in sales from the previous year during the holiday season according to a business report provided by the company in January.
Many retailers suffered during the holiday season slump which saw consumer foot traffic down 17.7% in December compared to last year despite industry wide promotional discounting.
The sudden departure of American Eagle CEO Robert Hanson in January along with the bleak earnings report hasnt helped shore up confidence in the company whose EPS is down 53% to $0.26 according to Yahoo! Finance.
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Whether tomorrow's report addresses the leadership vacuum left by Hanson's departure will be an important indicator of what American Eagle has planned to make it competitive in the teen apparel space once again.
Despite the rough final quarter, American Eagle's stock has preformed well with the stock gaining a volume of 3.2 million shares while having a volume average of 4.72 million shares.
TheStreet Ratings team rates AMERN EAGLE OUTFITTERS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: