From Yahoo Finance: 2025-05-14 06:32:00

Global specialty retailer American Eagle Outfitters (AEO) withdraws its financial guidance for FY25 due to macroeconomic uncertainties. Q1 revenue is expected to decrease by 5% to around $1.1bn. Comparable sales are projected to drop by 3%, with the American Eagle brand down 2% and Aerie down 4%.

AEO anticipates a GAAP operating loss of $85m for the quarter, with an adjusted operating loss of $68m. Increased promotional activities led to an inventory charge of $75m for markdowns on spring and summer merchandise. An additional charge for asset impairment and restructuring of approximately $17m is included in the GAAP operating loss.

CEO Jay Schottenstein expresses disappointment in Q1 execution, leading to higher promotions and excess inventory. Inventory write-down on spring and summer goods occurred. AEO is focusing on strengthening product performance and improving buying principles in the second quarter. FY24 reported total net revenue of $5.32bn, up 1% from FY23.



Read more at Yahoo Finance: American Eagle Outfitters withdraws FY25 outlook as Q1 revenue to dip 5%