American Eagle Outfitters (AEO) reports Q1 loss, misses expectations, cites slow sales

From CNBC: 2025-05-29 17:30:00

American Eagle Outfitters reported a loss of 29 cents per share in the first quarter, missing analyst expectations. Revenue was $1.09 billion, with comparable sales down 3%. The company cited slow sales and steep discounting for poor performance, leading to an operating loss of $85.18 million. Shares fell 8% in after-hours trading.

AEO withdrew its full-year guidance due to macroeconomic uncertainty and a volatile environment. It reported a $75 million write-down in spring and summer merchandise. Executives highlighted the need for stronger performance and positioning the company better for upcoming quarters. CFO Michael Mathias said they are on track to reduce sourcing exposure to China.

Analysts had expected a profit of 11 cents per share before AEO’s preannouncement. The company’s operating loss was $68.06 million, reflecting higher promotions and restructuring charges. Revenue fell slightly to $1.09 billion, with Aerie experiencing a 4% decline in comparable sales. AEO issued downbeat guidance for the second quarter.

President Donald Trump’s trade policy has impacted retailers like American Eagle, leading to uncertain financial outlooks. CFO Michael Mathias said the company is working to reduce tariff impact, with plans to cut sourcing exposure to China to under 10%. AEO stock has fallen 33% year-to-date, with a $200 million share repurchase program in progress.



Read more at CNBC: American Eagle Outfitters (AEO) earnings Q1 2025