American Eagle Q3 profit lifts despite sales drop

Pittsburgh American Eagle Outfitters said Tuesday that its profit grew to $59.2 million for the third quarter ended Oct. 31, compared with a profit of $42.6 million in the year-ago period.

Sales in the quarter dipped 1% to $749 million from $754 million. Comparable-store sales dropped 4%.

“Although earnings results remain below our standards, American Eagle Outfitters continued to gain ground during the third quarter,” said Jim O’Donnell, CEO. “The AE brand showed improvement across key merchandise categories. Additionally, aerie and Martin+Osa achieved strong top-line growth. I am confident that we are poised for a continued recovery in 2010 as we drive forward with creativity, vision and discipline.”

During the third quarter, the company opened five aerie stores. The company also closed two AE stores, and completed the renovation of seven AE stores during the quarter. The company closed nine stores through the first three quarters of the year, and said it expects to close an additional 10 to 20 locations during the fourth quarter. For the year, the company is planning approximately eight new and 25 remodeled AE stores, and 21 new aerie stores.

The company currently operates 952 stores in the United States and Canada.