NEWS: American Eagle Outfitters Inc. said Friday that its third-quarter net income tumbled 68 percent, matching Wall Street predictions, but issued a lower-than-expected profit prediction for the current period.
DETAILS: CEO Robert Hanson said the teen retailer's financial performance was "clearly unsatisfactory."
The company's revenue at stores open at least a year fell 5 percent. The metric is a key measure of a retailer's health. It excludes revenue from stores that recently opened or closed.
The company also on Friday named Chad Kessler as executive vice president, chief merchandising and design officer for its American Eagle Outfitters brand. He most recently served as chief merchandising officer for Urban Outfitters Inc.'s namesake brand.
NUMBERS: American Eagle earned $24.9 million, or 13 cents per share, down from $78.6 million, or 39 cents per share, in the same quarter of 2012.
Excluding charges related to the planed closing of the company's Warrendale, Pa., distribution center, adjusted earnings for the recent quarter totaled 19 cents per share.
Revenue fell 6 percent to $857.3 million from $910.4 million.
Analysts, on average, expected a profit of 19 cents per share on $856.1 million in revenue, according to FactSet.
FUTURE: American Eagle projected fourth-quarter earnings of 26 cents to 30 cents per share. Analysts expected earnings of 39 cents per share.
STOCK: American Eagle shares fell $1.08, or 6.7 percent, to $15.32 in morning trading. Its shares have fallen more than 20 percent so far this year.
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