Pittsburgh American Eagle Outfitters on Wednesday said its first-quarter profit fell by half, but results edged past analyst predictions. Although the teen retailer said it is seeing signs that business is "stabilizing," including improvements in its namesake denim, dresses and accessories, it also said it expected a steep drop in profit in the second quarter based on its current sales trends.
Profit for the period ended May 2 fell to $22 million from $43.9 million in the same quarter a year ago.
Revenue fell 4% to $612 million from $640.3 million. Same-store sales dropped 10% in the quarter.