Despite a net income drop of 70% in the second quarter ended Aug. 2, American Eagle’s results were still better than analysts’ expectations.
The retailer earned $5.8 million, down from $19.6 million a year earlier. Revenue decreased 2% to $710.6 million from $727.3 million. Analysts expected revenue of $689.5 million in the quarter. Same-store sales decreased 7%.
"Although the second quarter results were slightly ahead of our expectations, they do not reflect our potential," interim CEO Jan Schottenstein said. “We did, however make significant progress on our priorities to build a sustainable path to higher profitability. We successfully cleared through spring and summer merchandise and entered the second half of the year in a good inventory position.”
Following disappointing results during this year’s first quarter, which were consistent with the company’s expectations, American Eagle Outfitters decided to close 150 stores in North America during the next three years, including nearly 100 AE stores.