American Eagle Outfitters, Inc. (AEO), an operator of apparel and accessories retailer in US and Canada, released its fourth-quarter earnings which rose by over 47%, beating out an estimates, as cost cuts balance out lower sales shown by the company.
American Eagle had estimated an earnings of $1.02 a share for the year and 13-17 cents a share for the current quarter. Analyst surveyed by Thomson Reuters has an expectation of $1.10 and 16 cents per share respectively. The company has also seen improvement in sales after its reliance on heavy markdowns during the recession. The company also announced work-force and store closing reduction plans.
American Eagle released a reported profit of $87 million, or 44 cents, for the quarter that ended January 29. Profit rose from last year’s profit of $59.3 million, or 28 cents per share. The company stated last month that it expects earning at the high end of its previous forecast of 41 cents to 43 cents a share.
Sales however dropped by 4.2% to $916.1 million, while online growth rose 4%. Gross margin fell to 39.4% from its previous margin of 41%, while selling, general and administrative expenses decreased 15% to $194 milion.
The company also announced that it is looking for a new Chief Executive Officer, as James O’Donnell will retire after serving as CEO since 2003. James O’Donnell, who is 70 years old, will step down once a new CEO is named.
Chairman Jay Schottenstein is head of the board’s search to find a new CEO.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. is an apparel and accessories retailer in the US and Canada. The company offers denim wear, sweaters, graphic tees, fleece, outerwear, and accessories that target the 15-25 year old age group for both boys and girls under the American Eagle brand name; and clothing and accessories for kids under the 77kids by american eagle brand name. The company also provides a collection of Dormwear, intimates, and personal care products for girls under the aerie by American Eagle brand name. The company also sells its merchandise through e-commerce websites which include ae.com, aerie.com, and 77kids.com. The company operated 939 American Eagle Outfitters stores and 137 aerie standalone stores, as of March 10,2010. The company, which was founded in 1972, is based in Pittsburgh, Pennsylvania.
