American Eagle Outfitters released its financial statement today, March 11, 2014, with undeniably one of its worst quarters ever. Consolidated comparable sales for the 13 weeks decreased 7% over the same 13 week period last year. Gross profit decreased 28% to $332 million.
Jay Schottenstein, Interim CEO stated, “The Company’s results in 2013 were highly disappointing. While tough macro conditions have persisted in our retail sector, our merchandise and overall customer experience fell short of expectations. We’re taking steps to bring greater focus and excitement to our product offering and better engage our core customers. Our brands remain incredibly strong and I’m confident in our ability to execute the strategic plan and resume long-term profitable growth.”
Our subscribers will have an opportunity to see how American Eagle stacked-up among youth culture preferences in a few weeks with the release of our 14th Annual Spring Youth Culture Study 2014. Like many teen retailers, the challenging economy has shifted spending patterns greatly among a new youth marketplace. Details are in our Study.
More news from the American Eagle report:
Business conditions remain challenging, with severe winter weather contributing to weak demand. Based on a high single-digit decline in comparable sales, management expects first quarter EPS to be approximately breakeven compared to adjusted EPS of $0.18 last year. The guidance excludes potential asset impairment and restructuring charges.