Casual apparel chain American Eagle Outfitters Inc on Wednesday announced a five per cent slide in August same-store sales and warned third quarter earnings may fall short of Wall Street estimates.

The Pennsylvania-based company said if the same-store sales trend continued for the rest of the 13 week period, then third quarter earnings could be up to 10 per cent below analysts current target of 43 cents a share.

August consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores in Canada, fell 6.9 per cent year-on--year, with Bluenotes/Thriftys same-store sales plunging 27.7 per cent.

Total August sales rose 3.1 per cent to $156.5 million. That figure included $9.4m from the Bluenotes/Thriftys operation which fell from $12.8m in the year-ago period.

American Eagle added in a news release it "is encouraged by the improvement in its women's business and the new AE Fall One assortment which arrives in stores this week".