American Eagle Takes Flight Following CFO Departure

It was revealed on Tuesday that shares in American Eagle Outfitters

saw a healthy rise at the start of the week following the departure of Chief Financial Officer Joan Hilson, as well as the news that the company is planning to exit the children's business. On Friday of last week, AEO said that it would be exiting 77kids, the children's business that includes 22 stores and an online business. The company is currently looking into selling the business, either on a full or partial basis. CEO Robert Hansen said of 77kids that, "Although making this decision is disappointing, it is in the best interest of the company and our shareholders to prioritize and focus our efforts on businesses with the highest return potential." Meanwhile, Hilson is stepping down at the end of July. That will mark the second major leadership change at AEO in the last few months with former CEO James O'Donnell retiring in January and Hanson taking over. Following the news, AEO stock rose 10%, or $1.97, to $20.37 on Monday afternoon. That means that the shares have doubled since reaching a lowly $10 in September.