March 11 (Bloomberg) -- American Eagle Outfitters Inc., the teen-apparel retailer seeking a new chief executive officer, fell after forecasting first-quarter results that trailed analysts’ estimates.
The stock slid 7.8 percent to $13.10 at the close of trading in New York. Shares of the Pittsburgh-based company have slipped 9 percent so far this year, compared with a 1 percent gain for the Standard & Poor’s 500 Index.
American Eagle said today in a statement that it would break even in the current quarter. The average of analysts’ estimates compiled by Bloomberg was for profit of 12 cents a share. Same-store sales will fall by a high single-digit percentage, the company said, a worse performance than the 2.3 percent decline analysts projected.
“Business conditions remain challenging, with severe winter weather contributing to weak demand,” American Eagle said in the statement.
Like its peers, American Eagle is struggling as teens and parents pull back on apparel purchases with no major fashion trend to drive purchases. Same-store sales, which includes locations open at least a year as well as revenue from its website and Aerie underwear brand, fell 7 percent in the fourth quarter, more than the 6.6 percent decline analysts estimated. American Eagle said in January that CEO Robert Hanson would leave the company and Executive Chairman Jay Schottenstein would replace him on an interim basis.
Profit in the quarter ended Feb. 1 was 27 cents a share, the company said. The average of analysts’ estimates was 26 cents.
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