Nomura Securities analyst Simeon Siegel reiterated a Neutral rating and trimmed his price target on American Eagle Outfitters (NYSE: AEO) to $11.00 (from $13.00) following first quarter results.

Siegel comments, "With ongoing spend coupled with weak sales driving meaningful SGA deleverage, mgmt made it clear it plans to focus on tighter expense discipline as the challenging env’t/new normal continues to pressure results. We expect the store rationalization, tightening of expenses and shifting of the international strategy from company-owned stores to the licensed model will help AEO drive efficiencies as it continues to work towards a top-line turnaround. That said, we maintain our Neutral rating as we believe the challenging environment is showing no signs of abating at present and we await clarity on the top-line turn."

The firm lowered FY14E EPS from $0.64 to $0.51; FY15E EPS from $0.74 to $0.62.

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Shares of American Eagle Outfitters closed at $10.60 yesterday.