UPDATE 1-American Eagle Sept. same-store sales fall 2 pct

Wed Oct 10, 2007 4:29pm EDT
 
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(Recasts with lowered outlook, share activity)

NEW YORK, Oct 10 (Reuters) - American Eagle Outfitters Inc (AEO.N) posted a 2 percent decline in September same-store sales on Wednesday, prompting the retailer to cut its third-quarter earnings outlook and sending shares down nearly 3 percent in afterhours trade.

Analysts, on average, had expected an increase of 0.9 percent, according to Reuters Estimates.

Total sales for the five weeks ended Oct. 6 fell 5 percent to $222.8 million.

American Eagle, whose clothes appeal to teenagers and young adults, blamed unseasonably warm weather for the lower store traffic. It said it now expects to earn 44 cents to 45 cents per share in the third quarter, down from its prior forecast of 47 cents to 48 cents per share.

Analysts on average had been expecting 48 cents per share, according to Reuters Estimates.

American Eagle shares fell to $23.90 after the bell, after closing at $24.58 on the New York Stock Exchange. (See here for "Shop Talk" -- Reuters' retail and consumer blog) (Reporting by Martinne Geller)

 

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