American Eagle Q3 profit down 63%

Pittsburgh — American Eagle Outfitters’ profit fell 63% in the third quarter, to $9.03 million from $24.9 million in the year-ago period. The drop was partially driven by costs related to a restructuring program that includes closing underperforming stores and reducing headquarters headcount.



The teen retailer forecast a current-quarter profit that missed analysts' estimates and reported its fifth straight fall quarterly income as net revenue dropped to $854.3 million from $857.3 million amid sluggish mall traffic and increased online competition. Consolidated same-store sales fell 5%. Like other teen apparel retailers, American Eagle is increasingly challenged by such fast-fashion leaders as H&M and Forever 21.



“We managed the business better and were able to reduce markdown rates and control expenses,” said Jay Schottenstein, interim CEO. “Our ongoing priority to strengthen our business is reflected in the restructuring activities and efforts to drive a better customer experience through improved merchandising, customer engagement and building omni-channel capabilities.”



On a conference call with analysts, Schottenstein, in response to how the search for a permanent CEO is going, said “The process is underway.”