American Eagle: Retail climate 'tough,' pace of traffic 'choppy'
Says consistent performance is priority. Says challenges, rapid transformation taking place in industry. Says "winning in a tough environment." Says seeing "great momentum" in aerie. Says global expansion a "significant" opportunity. Says "ready to compete" in holiday season. Says retail environment "tough." Says promotional activity in Q3 "controlled," "targeted." Says "very pleased" with results over Thanksgiving weekend. Says plans to end year with 10-15 new format stores; plans to open 25 new format stores next year, with at least a third in new markets. Sees Q4 ending inventory up high single digits, says "comfortable" with inventory levels. Still sees FY CapEx $160M. Say "on track" to close 25-30 underperforming stores this year upon natural lease expirations. Says retail climate, particularly in malls, is "tough," adds that pace of traffic is "choppy." Says taking "cautious" view for Q4. Comments taken from the Q3 earnings conference call. American Eagle Outfitters is down 9.3% in pre-market trading.