(RTTNews) - Teen clothing retailer American Eagle Outfitters, Inc. (AEO: News ), on Thursday reported declines in comparable store sales and total sales for the month of October. Following the news, shares of American Eagle were down around 12% on the NYSE. Going ahead, American Eagle raised the lower end of its adjusted earnings outlook for the third quarter.

The Pittsburgh, Pennsylvania-based company said comparable store sales for the four weeks ended October 31, 2009 decreased 5%, compared to a 12% decrease in October 2008.
The company's total sales for the the four-week period ended October 31, 2009 were $195.1 million, down 5% from $204.8 million in the four-week period ended November 1, 2008.

Total sales for the the third quarter slid 1% to $749.0 million from $754.0 million in the year ago quarter. Comparable store sales for the quarter decreased 4%, compared to a 7% decline in the same period last year.

Year-to-date comparable store sales shrank 8%, compared to a 7% drop in the same period last year. Total sales for the period was $2.019 billion, down 3% from $2.083 billion in the corresponding period last year.

Looking forward for the third quarter, American Eagle Outfitters now expects earnings in the range of $0.27 - $0.28 per share, compared to earlier issued forecast of $0.24 - $0.26 per share. This compares to earnings of $0.21 per share reported in the same quarter last year.
The company now anticipates third quarter adjusted earnings in the range of $0.20 - $0.21 per share, compared to earlier issued forecast of $0.19 - $0.21 per share, excluding a tax benefit of nearly $0.05 per diluted share associated with the repatriation of earnings from Canada. This recent guidance excludes a tax benefit of about $0.07 per share associated with the repatriation of earnings from Canada, and excludes the possibility of additional impairments or losses related to investment securities.

On average, 29 analysts polled by Thomson Reuters currently expect the company to earn $0.22 per share for the quarter. Analysts' estimate typically exclude one-time charges and gains.

AEO is currently trading at $15.74, down 2.12 or 11.87%, on a volume of 14.14 million shares on the NYSE.

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by RTT Staff Writer

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