Teen apparel retailer American Eagle Outfitters Inc. forecast current-quarter profit below analysts' estimates due to intense discounting in the holidays.

The company said it expects a fourth-quarter profit of 26 cents to 30 cents per share. Analysts on average were expecting a profit of 39 cents per share, according to Thomson Reuters I/B/E/S.

American Eagle also forecast a mid single-digit percentage decline in comparable-store sales.