NEW YORK (TheStreet) -- Shares of American Eagle Outfitters (AEO) are down -5.91% to $10.66 today following news the company will close 150 stores over the next three years, as it reports another quarter of declining revenue, income and comparable store sales, Reuters reports.
The clothing retailer, which operates over 1,000 stores in the U.S., Canada, China and Mexico, closed 50 American Eagle stores and 20 Aerie stores this year. A total of 42 stores were closed in 2013.
The company's consolidated comparable sales fell 10% for the 2014 first quarter, which was higher than the 7.8% decrease expected by analysts at Consensus Metrix, according to Reuters.
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Total net revenue for the most recent quarter was down 5% to $646 million from $679 million for the 2013 first quarter.
Net income fell 86% from the previous year to $3.87 million, or 2 cents per share.
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:
"We rate AMERN EAGLE OUTFITTERS INC (AEO) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."