Shares of teen and young adult clothing retailer, American Eagle Outfitters Inc. (NYSE: AEO) fell more than 3 percent on Tuesday, after the firm reported a 23 percent gain in its first quarter profit, but stated second quarter earnings expectations below analysts estimates.

Net income at the firm, which targets 15-25 year old consumers, was $78.8 million, or 35 cents per share, up from $64.2 million or 28 cents per share a year ago.

The earnings were in line with an average of estimates from a survey analysts by Reuters Estimates.

Chief executive Jim O’Donnell said the results were based on the strength of the AE brand and good expense management.

Looking ahead to the second quarter, however, the firm said earnings were expected to be in the range of 34 cents to 36 cents per share, lower than the 37 cents per share expectations of analysts polled by Reuters Estimates.

Sales rose 17 percent to $612.4 million in the three months which ended May 5.

The firm said comparable store sales, a closely watched retail metric, rose 6 percent in the same period.

The company also said it would open 40 new aerie, intimate apparel stores this year. It also expects to add 34 new, and 56 remodeled American Eagle stores. The company will also open 14 more MARTIN + OSA stores, which are geared toward 25 to 40 year old consumers.

The company also said it plans to repurchase an additional 23 million shares under an expanded buyback program.

Shares in American Eagle fell $1.03, or 3.51 percent, to $28.30 in mid-day trading on the New York Stock Exchange.