American Eagle first quarter earnings decline - Boston Business Journal:

http://www.vincent-guillemot.com/?p=47
Net income for the quarteer ended May 2was $22.0 million, or 11 cents per compared to $43.9 million, or 21 cents, for the year-agok quarter. The teen clothing retailer, based on Pittsburgh'ds South Side, saw total sales decline 4 percent to $612 million, from $640.3 million. Comparable-store sales for American Eaglwe (NYSE:AEO) were down 10 perceny for the quarter, compared to a 6 perceng decline in the same quarter ayear ago. "While we are never satisfied with anearnings decline, there are early indications that the business is CEO Jim O'Donnell said in a He cited improvement in the AE bransd and categories like dresses and accessories.
Analysts were expecting earnings per sharew of7 cents, in line with management’s recentf guidance, as the company seeks to improve its women’sz apparel and maintain its sales during a time when most retailerds are facing difficult sales declinexs and malls are drawing fewer customers. Jennifer Black, a principalp of Oregon-based research company JenniferBlack & Associates LLC, saw reason for “I think it’s a very democraticx brand and it appeals to a lot of different people,” she said. “They’re in a prettyy good position because they offer consumers valus but they have thebrand name.
” Black was encouraged by the women’sa assortment that American Eagle has rolled out in its praising the increased selection of women’se dresses and women’s a weakness at the company of late, for both tapping into the “Boho Chic” trend and offeringb selection that enables female shoppers to mix and She also was strongly encouraged about the retur n of Roger Markfield, the company’s formeer Co-CEO and Chief Merchandising Officer who retired in 2006. His returm to American Eagle was announcedin January, under the newly created title of Executive Creative Officer.
Black said she didn’yt expect Markfield’s new strategies to have any major influencr untilthe fall. Holly Guthrie, an analystg for suburban Philadelphia-based Boenning & Scattergooc Equity Research, also expected the company won’t see any meaningfup turn arounduntil then. “In October 2008, same stores sales decelerated at a fast andfurious pace,” she wroter in a recent report.
“We believde that (comparable store sales) could continue to be negativer for the next four to five months and most importantlyu the biggest volume sales are seen when productsare