Specialty retailer American Eagle Outfitters (NYSE:AEO) said its chief financial officer Joan Hilson is stepping down. In addition, the company said it plans to exit its children's business, 77kids, which includes 22 stores and the online business.
Finance Chief Joan Hilson is stepping down, and will work through the end of July 2012 to ensure an orderly transition. An active search for a successor to Hilson is currently underway.
Scott Hurd, AEO's vice president and controller, will lead day-to-day management of the finance team, effective immediately, and assume the roles of interim principal accounting officer and interim principal financial officer until a successor is appointed.
In a separate release, the company announced plans to exit its children's business, 77kids, which includes 22 stores and the online business. The company is currently exploring options for the business, which include a full or partial disposition of assets to a third party.
In fiscal 2011, the 77kids brand generated an after-tax loss of about $24 million on sales of $40 million. The company anticipates charges associated with the disposition of 77kids to be taken primarily in the second and third quarters, which will be disclosed as plans are finalized.
As a reminder, the company would announce first quarter results on May 23 and will include non-GAAP results, adjusted to exclude the operations of 77kids.
AEO closed Friday's regular session up 0.44% at $18.40. The stock has been trading between $10 and $21.13 for the past 52 weeks.