New York City Shoppers at American Eagle Outfitters will find fewer deep discounts this spring and summer than in past months. The company is switching gears as it starts to promote key value-priced clothing items as a way to strengthen sales after a 77% profit drop.
The company reported on Wednesday that it earned $32.7 million in its latest quarter, compared with almost $140.5 million in the same period a year ago. Sales for the quarter ended Jan. 31 were $905.7 million, down 9% from a year ago. Meanwhile, same-store sales fell 16%, and the company said weaker sales led to reactionary promotions.
The company said it will run more price deals on key wardrobe items, such as its recent "all jeans under $30" promotion. Inventory will be kept tight to match fewer consumer spending, and stores will stock new items more frequently.