Originally published at www.seclive.com
American Eagle Outfitters, Inc. (NYSE:AEO) announced its financial results for the first quarter of fiscal year 2014, posting a sharp decline in profit and announcing plans to close more stores. The teen apparel retailer missed revenue expectations of $648M with a 4.9% decrease to $646.1M while the company's gross margin tightened from 38.8% to 35%. In a bid to save the company between $10M and $15M a year, American Eagle also announced it will close 150 stores in North America over the next three years. Earnings fell sharply by 86% from $28M and $0.14 per share to $3.9M and $0.02 per share. CEO Jay Schottenstein commented that the company's results were in line with expectations, a reflection of lagging sales and more discounts. Consumers, searching for the best deals on apparel, have put increased pressure on American Eagle thanks to competition from H&M and Forever 21.
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