American Eagle Q4 falls 89% on lower sales, charges

Pittsburgh -- American Eagle Outfitters Inc.'s fourth-quarter profit plunged 89% on lower sales and one-time charges related to employee severance costs, the discontinuation of a product line and other items. The company also forecast first-quarter results that were below analysts' estimates.

The teen apparel retailer posted net income of $10.5 million for the quarter ended Feb.1, down from $94.8 million in the year-ago period.

Sales were $1 billion in the quarter, down from $1.1 billion last year. Same-store sales fell 7%.

For the full year, American Eagle's net income declined to $83 million from $232.1 million. Annual revenue fell 5% to $3.31 billion, from $3.48 billion.

"The company's results in 2013 were highly disappointing," said interim CEO Jay Schottenstein. "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."

In January, American Eagle CEO Robert Hanson left the company, on the heels of a disappointing holiday season. Schottenstein assumed the post on an interim basis.

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