American Eagle Outfitters reports challenging Q1, withdraws outlook
American Eagle store Credits: American Eagle Outfitters American Eagle Outfitters (AEO) revealed a challenging first quarter with net revenue decreasing by 5 percent to 1.1 billion dollars and comparable sales down by 3 percent. Both key brands saw decreases, with Aerie comparable sales down 4 percent and American Eagle comparable sales down 2 percent. Given the macro uncertainty and the first-quarter results, American Eagle Outfitters has withdrawn its full-year fiscal 2025 outlook. Jay Schottenstein, AEO’s executive chairman and CEO, acknowledged the disappointing results but emphasized that the company is taking urgent actions to improve performance in upcoming quarters. “As we noted in our preliminary release, the first quarter was a challenging period for our business. While we are disappointed with the results, we are taking actions to better position the company and drive stronger performance in the upcoming quarters. Our brands remain resilient. The team is executing with urgency as we look to strengthen both the topline and profit flow-through,” he said. The first quarter also saw a contraction in profitability. Gross profit stood at 322 million dollars, with the gross margin plummeting to 29.6 percent compared to 40.6 percent last year. The company reported an operating loss of 85 million dollars, with an adjusted operating loss of 68 million dollars. The diluted loss per share was 36 cents, and the adjusted diluted loss per share was 29 cents. For the second quarter of 2025, the company anticipates revenue to be down 5 percent and comparable sales to decrease by 3 percent. Gross margin is expected to be down year-over-year, and operating income is forecasted to be between 40 million dollars and 45 million dollars.
American Eagle Outfitters (AEO) revealed a challenging first quarter with net revenue decreasing by 5 percent to 1.1 billion dollars and comparable sales down by 3 percent. Both key brands saw decreases, with Aerie comparable sales down 4 percent and American Eagle comparable sales down 2 percent.
Given the macro uncertainty and the first-quarter results, American Eagle Outfitters has withdrawn its full-year fiscal 2025 outlook.
Jay Schottenstein, AEO’s executive chairman and CEO, acknowledged the disappointing results but emphasized that the company is taking urgent actions to improve performance in upcoming quarters. “As we noted in our preliminary release, the first quarter was a challenging period for our business. While we are disappointed with the results, we are taking actions to better position the company and drive stronger performance in the upcoming quarters. Our brands remain resilient. The team is executing with urgency as we look to strengthen both the topline and profit flow-through,” he said.
The first quarter also saw a contraction in profitability. Gross profit stood at 322 million dollars, with the gross margin plummeting to 29.6 percent compared to 40.6 percent last year. The company reported an operating loss of 85 million dollars, with an adjusted operating loss of 68 million dollars. The diluted loss per share was 36 cents, and the adjusted diluted loss per share was 29 cents.
For the second quarter of 2025, the company anticipates revenue to be down 5 percent and comparable sales to decrease by 3 percent. Gross margin is expected to be down year-over-year, and operating income is forecasted to be between 40 million dollars and 45 million dollars.
