Dallas, Texas 12/27/2013 (FINANCIALSTRENDS) – As per the current quarter update the American Eagle Outfitters (NYSE:AEO) has offered a muted outlook which also includes the most critical holiday season. The company also reported a 68% dip in its third quarter earnings. Sales fall and narrowed margins were termed as the main reason for this dip. The company also has to resort to promotions and discounts.
Chief Executive Robert Hanson also said that their financial performance is totally unsatisfactory and is not at all consistent with their objectives. He also said that their company is trying to navigate through a highly promotional North American retail landscape and the company is also planning to make huge improvements in the marketing and the merchandising part. In a sudden move the company also made Chad Kessler as their new chief design and merchandising officer. The new position will come into effect from 3rd Feb next year.
Overview of the company
American Eagle Outfitters (NYSE:AEO), is a leading global retailer that deals in quality clothing, related accessories and different personal care products at highly affordable rates. The company was founded in the year 1977 and currently it operates 932 retail stores of AE brand and 132 Aerie stores. The Aerie brand mainly focuses on selling female underwear and other intimate wear for women.
The company also has online e-commerce portals ae.com and aerie.com. With the help these two online e-commerce portals the company ships its products to 81 countries around the world. Another best thing about the company is that it also has 61 licensed stores in Middle East, Asia and Eastern Europe. The Current market capitalization of American eagle outfitters is $2.7 billion. Company’s 2012 performance impressed many investors and many of them are bullish about this stock and are suggesting a long term investment in this stock for better and nice returns.