American Eagle Reports Earnings of 5 Cents Per Share

Clothing company American Eagle Outfitters (AEO) reported second quarter earnings of 5 cents per diluted share, down from 14 cents per diluted share a year earlier.

The company recorded $18 million of pre-tax closure charges related to the closing of its MARTIN+OSA business in the second quarter, American Eagle said in statement. Income from continuing operations dropped to $26 million, from $37 million a year earlier.

Total sales for the second quarter rose to $652 million, from $647 million a year earlier. Comparable stores sales dropped 1%.

"The second quarter was a challenging period, resulting in a miss to our sales and profit plans," CEO Jim O'Donnell said.

The company plans to implement measures including cutting inventories, closing underperforming stores and firing staff to boost profit.

American Eagle expects third quarter comparable store sales to be in the low single digits, with earnings from continuing operations of 23 cents to 26 cents per diluted share