American Eagle Starts to Slide

Pittsburgh Total sales at teen retailer American Eagle Outfitters were $688.8 million in the second quarter of fiscal 2008, down 2% from $703.2 million in the year-ago period. Same-store sales decreased 9% in the most-recent quarter compared to a 2% increase in same-store sales last year.

Although declining sales had been the story for several quarters at most retailers, American Eagle posted a 5% increase in total sales for the first quarter of 2008 and a 7% increase in total sales during the fourth quarter of 2007. However, the retailer’s second-quarter falter was foreshadowed by its disappointing 6% decline in first-quarter same-store sales, which compared to a 6% increase in same-store sales during the first quarter of 2007.