UPDATE: American Eagle Posts 3% Rise In Q2 Profit, Issues Weak Forecast

American Eagle Outfitters

reported a 3% rise in its fiscal second-quarter earnings and issued a weak profit view for the third quarter. American Eagle expects earnings of $0.14 to $0.16 per share, versus analysts' estimates of $0.35 per share. American Eagle's quarterly profit rose to $19.6 million, or $0.10 per share, from $19 million, or $0.09 per share, in the year-ago period Its net sales declined 1.7% to $727.3 million, while same-store sales dropped 7%. American Eagle's gross margin shrank to 33.8% from 37.4%. American Eagle shares tumbled 9.83% to $14.77 in pre-market trading.