News Breaks
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| 09:54 EDT |  | AEO |
| theflyonthewall.com: | American Eagle sees FY09 CapEx $120M-$130M, about half of FY08 | | On the Q3 earnings conference call, American Eagle Outfitters (AEO) forecast FY09 capital spending $120M-$130M, about half of last year. The company said total merchandise inventory at Q3-end was $425M. In addition, management noted that same-store sales for the first three weeks of November declined 5% but December is "going to be balanced." Looking ahead, the company's Q4 average weekly inventory per foot is expected to be up in the mid single digits. The company said it expects to lower product costs to modestly benefit the merchandise column and to pass savings onto customers through value pricing. American Eagle said it is poised for a continued recovery in 2010. The company, which said its "crystal ball is still murky, but less murky than it was a year ago," believes its aerie brand will continue to be accretive in 2010 and said Martin + Osa continues to improve modestly quarter over quarter. The company anticipates closing 10-20 stores in Q4. :theflyonthewall.com |
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