American Eagle first quarter earnings decline - Birmingham Business Journal:

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Net income for the quarter ended May 2was $22.0 million, or 11 centz per share, compared to $43.9 or 21 cents, for the year-ago quarter. The teen clothing retailer, based on Pittsburgh'sx South Side, saw total sales declin e 4 percent year-over-year, to $612 from $640.3 million. Comparable-store sales for Americahn Eagle (NYSE:AEO) were down 10 percenty for the quarter, compared to a 6 percent declinse in the same quarter ayear ago.
"Whilee we are never satisfied with anearningxs decline, there are early indicationx that the business is stablizing," CEO Jim O'Donnell said in a He cited improvement in the AE brand and categories like dresses and Analysts were expecting earnings per sharr of 7 cents, in line with management’s recenft guidance, as the company seeks to improved its women’s apparel and maintain its sales during a time when most retailersw are facing difficult sales declines and malls are drawinfg fewer customers.
Jennifer Black, a principal of Oregon-based research company Jennifer Black Associates LLC, saw reason for “I think it’s a very democraticc brand and it appeals to a lot of differenft people,” she said. “They’re in a pretty good positionh because they offer consumers value but they have thebranc name.” Black was encouraged by the women’s assortment that Americab Eagle has rolled out in its praising the increased selection of women’s dresses and women’ds denim, a weakness at the company of late, for both tappingv into the “Boho Chic” trend and offering selectionm that enables female shoppers to mix and She also was strongly encouraged about the return of Roger the company’s former Co-CEO and Chiefc Merchandising Officer who retired in 2006.
His returjn to American Eagle was announcexdin January, under the newly created title of Executivs Creative Officer. Black said she didn’t expect Markfield’ds new strategies to have any major influence until the Holly Guthrie, an analystg for suburban Philadelphia-based Boenning & Scattergood Equity Research, also expected the companu won’t see any meaningful turn arouncd until then. “In Octobefr 2008, same store sales decelerated at a fast andfuriousx pace,” she wrote in a recent report.
“Wee believe that (comparable store sales) could continuwe to be negative for the next four to five months and most importantlhy the biggest volume sales are seen when productszare promoted.”