Bloombergreports that American Eagle's profits fell on falling sales. American Eagle's sales at stores open at least a year more plunged 10% in the 3 months ending August 1st. Bloomberg says the sales woes for American Eagle can be blamed on teens, which have turned to lower priced retailers like Aeropostale.
Net income fell to 14 cents a share from 29 cents a year earlier, the Pittsburgh-based company said today in a statement. The retailer said Aug. 6 that earnings would be 16 cents. Profit excluding a tax benefit was 12 cents a share. Analysts predicted 15 cents, the average of estimates compiled by Bloomberg.
Sales at stores open at least a year dropped 10 percent in the three months ended Aug. 1, the company reiterated. Aeropostale Inc., the mall-based teen retailer that sells clothes at low prices, reported last week that comparable-store sales advanced 12 percent in that period as young shoppers sought bargains.
American Eagle did say its "redesigned denim collection and women's clothes" have been doing well as people buy back-to-school apparel. Abercrombie & Fitch has also struggled as teens look for lower priced clothes.
Bloomberg 
