CORRECTED - CORRECTED-UPDATE 1-American Eagle president-CMO to exit in 2009

(Corrects McGalla's title to chief merchandising officer from chief marketing officer, spelling of name)

LOS ANGELES, June 26 (Reuters) - American Eagle Outfitters Inc (AEO.N) President and Chief Merchandising Officer Susan McGalla will leave the company at the end of her contract, which expires Jan. 31, 2009, the retailer said on Thursday.

McGalla said in a statement that she will devote her remaining months with the company to building its Martin + Osa stores and its 77kids children's apparel brand as well as to special projects.

Her duties as president will be assumed by American Eagle Chief Executive Jim O'Donnell and the company will conduct a search for a new chief merchandising officer.

McGalla said she was looking for "new challenges" after a 14-year stint at the clothing retailer. (Reporting by Gina Keating, editing by Mark Porter)