Although profits fell for the fiscal year overall for American Eagle Outfitters Inc., the South Side teen retailer ended the year on a stronger note.

The retailer Wednesday morning reported profits of $59.3 million, or 28 cents per share, in the three months ended Jan. 30, compared to $32.7 million, or 16 cents, in the previous year.

Excluding one time costs, the company said fourth quarter earnings would have been 33 cents in the most recent quarter, matching guidance reiterated just a week ago and meeting analysts expectations.

Sales for the fourth quarter rose 7 percent to $972 million compared to $905.7 million a year ago, and the company said profit margins improved as a result of offering fewer markdowns. Sales in stores open at least a year rose 5 percent.

For the fiscal year, American Eagle reported net income of $169 million, or 81 cents per share, down from $179 million, or 86 cents, a year earlier. Excluding one-time charges, earnings per share would have been 79 cents per share vs. 99 cents in the previous fiscal year.

Analysts polled by Thomson Financial had been looking for earnings of 76 cents per share.

Total sales for the year were almost flat at $2.990 billion vs. $2.989 billion the previous year.

American Eagle CEO Jim O'Donnell said 2009 started off rough but ended on a high note. "During the (fourth) quarter, we were especially pleased with the improvement in the AE brand. Our assortments were stronger and the price/value offering was more compelling than ever."

Late Tuesday, American Eagle announced it was giving up on its attempt to move into the adult clothing market with its Martin + Osa clothing chain. The project targeting 25- to 40-year-old customers had grown to include 28 stores plus online sales. All the stores should be closed by summer, the company said.

"In 2010, we will focus our efforts and resources on the American Eagle family of brands including AE, aerie and 77 kids, which have the greatest potential," Mr. O'Donnell said in this morning's statement. "I am confident that we have the potential to realize our goals and position the company for long-term success."

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