American Eagle Q2 income slides 70% but still tops estimates

Pittsburgh -- American Eagle's second-quarter net income was down 70% amid weak sales. But its results were better than analysts estimates.

For the period ended Aug. 2, American Eagle Outfitters Inc. earned $5.8 million, down from $19.6 million a year earlier.

Revenue decreased 2% to $710.6 million from $727.3 million, topping estimates of $689.5 million. Same-store sales fell 7%.

"Although the second quarter results were slightly ahead of our expectations, they do not reflect our potential," interim CEO Jan Schottenstein said in a statement. “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.”

Selling, general and administrative expenses increased to $190.1 million from $186.3 million. Depreciation and amortization expense climbed to $35.4 million from $29.7 million.

 

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