American Eagle Outfitters withdraws 2025 guidance after weak Q1
American Eagle store Credits: American Eagle Outfitters American Eagle Outfitters (AEO) has released its preliminary first-quarter 2025 results, revealing a decline in revenue and comparable sales. The company expects revenue to be approximately 1.1 billion dollars, a decrease of about 5 percent compared to the first quarter of the previous year. Comparable sales are projected to be down roughly 3 percent, with the American Eagle brand declining by 2 percent and Aerie falling by 4 percent. AEO anticipates a GAAP operating loss of around 85 million dollars and an adjusted operating loss of approximately 68 million dollars driven by higher-than-planned promotional activities and an inventory charge of roughly 75 million dollars related to a write-down of spring and summer merchandise. Additionally, the GAAP operating loss includes an asset impairment and restructuring charge of approximately 17 million dollars, primarily due to the closure of two fulfillment centers. “We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein. Citing macroeconomic uncertainty, AEO has withdrawn its previously provided fiscal year 2025 guidance. The company plans to release its final first-quarter 2025 results on May 29, 2025.
American Eagle Outfitters (AEO) has released its preliminary first-quarter 2025 results, revealing a decline in revenue and comparable sales.
The company expects revenue to be approximately 1.1 billion dollars, a decrease of about 5 percent compared to the first quarter of the previous year. Comparable sales are projected to be down roughly 3 percent, with the American Eagle brand declining by 2 percent and Aerie falling by 4 percent.
AEO anticipates a GAAP operating loss of around 85 million dollars and an adjusted operating loss of approximately 68 million dollars driven by higher-than-planned promotional activities and an inventory charge of roughly 75 million dollars related to a write-down of spring and summer merchandise. Additionally, the GAAP operating loss includes an asset impairment and restructuring charge of approximately 17 million dollars, primarily due to the closure of two fulfillment centers.
“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein.
Citing macroeconomic uncertainty, AEO has withdrawn its previously provided fiscal year 2025 guidance. The company plans to release its final first-quarter 2025 results on May 29, 2025.
