American Eagle Q1 profit down but tops Street; to build new DC
Pittsburgh -- American Eagle Outfitters Inc. earned $28 million in its first quarter, down from $39.7 million in the same quarter last year, as cooler weather hurt demand for its spring fashions and some special charges cut into its results. But the retailer still beat market expectations.
In related news, American Eagle Outfitters will invest more than $160 million to construct a new direct-to-consumer distribution center in Hazle Township, Pa.
Total revenue for the quarter ended May 4 was down to $679.5 million from $708.7 million. Same-store sales fell 5%.
“As expected, the first quarter was difficult, but we remained confident in our strategic direction and ability to deliver,” CEO Robert Hanson said on the chain’s quarterly conference call. “Cold weather after last year's record warmth and soft consumer demand for spring apparel impacted store traffic. Within this context, it was tough to generate growth against the very strong quarter last year.”