AEO announces abrupt departure of its CEO
Struggling teen clothing retailer American Eagle Outfitters Inc. said on Wednesday that CEO Robert Hanson was leaving the South Side-based company.
Hanson, who became CEO two years ago, was succeeded by Jay L. Schottenstein on an interim basis until the company finds a permanent top executive.
Schottenstein was CEO from 1992 to 2002, chairman from 1992 to 2012 and executive chairman since 2012. He is the seventh largest shareholder in the company and is a member of the Columbus, Ohio, family that founded American Eagle and has stakes in shoe retailer DSW Inc., Value City Furniture and other companies.
American Eagle spokeswoman Iris Yen declined to provide a reason for Hanson's departure or comment further.
Earlier this month, Hanson, who had previously been a brand president at jeans maker Levi Strauss, announced that American Eagle's sales during the all-important holiday season had fizzled.
Revenue for the nine weeks ended Jan. 4 dropped 2 percent to $882 million, compared with $904 million for the nine weeks ended Dec. 29, 2012, the company said. Results comparing stores open at least a year were even worse, dropping 7 percent.
American Eagle also said Roger Markfield, executive creative director, will postpone his previously announced retirement.
“I look forward to working closely with Roger and our talented team to capitalize on the significant potential of our brands and to position the company for growth and long-term success,” Schottenstein said.
American Eagle said its prediction of per-share earnings in the fourth quarter hasn't changed. It previously said fourth-quarter net income will be 26 cents a share, excluding one-time charges. In the same period last year, American Eagle reported adjusted net income of 55 cents a share.
The company will report financial results for the fourth quarter on March 11.
American Eagle shares fell 2.5 percent to $13.95 in after-hours trading. Shares tumbled 30 percent last year, compared with a 30 percent gain for the Standard & Poor's 500 Index.
Hanson received total compensation of $11.6 million in 2012, including a base salary of $1.05 million, according to the most recent financial filings by American Eagle. He is entitled to two years salary plus other payments and benefits totalling about $6.3 million if his employment is terminated, according to company filings.
Bloomberg News Service contributed. Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or email@example.com.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Consol Energy cutting retiree health benefits, phasing out pension
- Stocks slammed as manufacturing slows in U.S., abroad
- LNG exports get federal approval from Dominion’s Cove Point terminal
- Hospitals, doctors in Pa. received $32M in 5 months from drug, medical device companies
- Google Pittsburgh instrumental in fight against hackers, co-directors say
- Oil, gas industry boom leads to expansion of laws in Pennsylvania
- Retirement planning is about more than just money
- EPA says greenhouse gas releases from wells, pipelines decline
- Cranberry-based Prodigo Solutions: Hospitals can reduce high supply costs
- Trib 30 index of Pittsburgh-area stocks falls in September
- Michael Baker CEO Bergman outlines changes in engineering company