American Eagle Outfitters (AEO) has reported a 63.72 percent plunge in profit for the quarter ended Nov. 01, 2014. The company has earned $9.04 million, or $0.05 a share in the quarter, compared with $24.90 million, or $0.13 a share for the same period last year. On an adjusted basis, earnings per share were at $0.22 for the quarter compared with $0.19 in the same period last year.

Revenue during the quarter went down marginally by 0.35 percent to $854.29 million from $857.30 million in the previous year period. Gross margin for the quarter expanded 207 basis points over the previous year period to 36.93 percent. Total expenses were 97.30 percent of quarterly revenues, up from 95.12 percent for the same period last year. That has resulted in a contraction of 218 basis points in operating margin to 2.70 percent.

Operating income for the quarter was $23.08 million, compared with $41.84 million in the previous year period. However, the adjusted operating income for the quarter stood at $74.30 million compared to $61.15 million in the prior year period. At the same time, adjusted operating margin improved 156 basis points in the quarter to 8.70 percent from 7.13 percent in the last year period.

"Consistent with our previous announcement, the third quarter delivered higher margins and 16% adjusted earnings growth over last year, in a highly challenging and competitive marketplace. We managed the business better and were able to reduce markdown rates and control expenses. Our ongoing priority to strengthen our business is reflected in the restructuring activities and efforts to drive a better customer experience through improved merchandising, customer engagement and building omni-channel capabilities."