American Eagle Outfitters Inc. Reports Preliminary First Quarter Results

For the first quarter of 2025, American Eagle anticipates revenue of approximately $1.1 billion, reflecting a decline of around 5% compared to the same quarter last year. Comparable sales are expected to decrease by approximately 3%, with the American Eagle brand reporting a 2% drop and Aerie, the company's intimates brand, facing a 4% decline.

This downturn highlights the ongoing challenges faced by the retailer in adapting to changing consumer preferences amidst a competitive retail landscape.

Management has projected a GAAP operating loss of about $85 million for the quarter, alongside an adjusted operating loss of approximately $68 million. The adjusted figure accounts for heightened promotional activities during the quarter and a significant inventory charge of roughly $75 million due to a write-down of spring and summer merchandise.

The GAAP operating loss also includes an asset impairment and restructuring charge of around $17 million, primarily attributed to the closure of two fulfillment centers as part of the company’s ongoing supply chain network optimization project.

Jay Schottenstein, AEO’s Executive Chairman and CEO, expressed disappointment regarding the first quarter performance. He noted that the merchandising strategies did not generate the anticipated results, leading to increased promotions and excess inventory. Schottenstein acknowledged the impact of these challenges on the company's financial health, particularly the decision to write down inventory associated with seasonal goods.

Despite the struggles, Schottenstein remains optimistic, stating, “We have entered the second quarter in a better position, with inventory more aligned to sales trends. Additionally, we are actively evaluating our forward plans.” He emphasized the urgency with which the team is working to enhance product performance and improve buying principles.

In light of these preliminary results and the prevailing macroeconomic uncertainty, American Eagle has decided to withdraw its previously issued guidance for fiscal year 2025. This move signals a cautious approach as management reevaluates its strategy based on recent performance metrics.

The company plans to release final first quarter financial results on May 29, 2025, after market close. Following the release, AEO will host a conference call at 4:30 PM ET to discuss the results in further detail. This call will be accessible via a live webcast on the company’s website, with a replay available shortly after the event.

American Eagle Outfitters, Inc. is a prominent global specialty retailer known for its portfolio of beloved apparel brands, including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder, and Unsubscribed. The company operates stores across the U.S., Canada, and Mexico, and has a significant e-commerce presence, making its products available in over 30 countries through a network of license partners. AEO remains committed to empowering customers to celebrate their unique personal style through quality, comfortable, and timeless apparel.

The preliminary results underscore a pivotal moment for American Eagle Outfitters as the company navigates its path forward amidst challenges in the retail sector. Investors and stakeholders will be keenly awaiting the finalized financial results and insights from the upcoming earnings call.