By
Reuters
Published
May 27, 2009
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American Eagle posts better-than-expected profit

By
Reuters
Published
May 27, 2009

NEW YORK, May 27 (Reuters) - American Eagle Outfitters Inc (AEO.N) reported better-than-expected quarterly earnings on Wednesday 27 May, and said there were early indications that business is stabilizing.


American Eagle Outfitters - Spring 2009

American Eagle, which caters to teenagers and young adults, has been trying to improve its women's merchandise, especially as its fickle customers buy less or flock to lower-priced rivals in the recession.

"We are seeing improvements in the AE brand, particularly in denim and other key fashion categories such as dresses and accessories," said Jim O'Donnell, the company's chief executive officer.

Net income tumbled to $22.0 million, or 11 cents per share, in the first quarter, ended on May 2, from $43.9 million, or 21 cents per share, a year earlier.

Excluding a tax benefit and loss from the sale of investment securities, profit was 8 cents per share. Analysts on average were expecting 7 cents per share, according to Reuters Estimates.

Sales fell 4 percent to $612 million.

American Eagle forecast second-quarter earnings of 12 cents to 15 cents per share, excluding items. (Reporting by Martinne Geller; Editing by Derek Caney)

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