American Eagle Outfitters pulls 2025 outlook on ‘disappointing’ Q1

Jangoulun Singsit

Fri, May 16, 2025, 6:12 AM 2 min read

In its preliminary study for the archetypal quarter, American Eagle Outfitters said its show was “disappointing”, which has led to a reconsideration of its strategy for the upcoming months.

AEO expects gross for afloat twelvemonth to diminution by low-single-digit decline, with anticipated operating income ranging betwixt $360m and $375m.

AEO main enforcement serviceman and committee enforcement president Jay Schottenstein said: "We are intelligibly disappointed with our execution successful the archetypal quarter. Merchandising strategies did not thrust the results we anticipated, starring to higher promotions and excess inventory. As a result, we person taken an inventory constitute down connected outpouring and summertime goods."

Initial fiscal information for Q1 suggests a projected gross of astir $1.1bn, representing a 5% diminution from the erstwhile year's corresponding period.

Comparable income besides fell by an estimated 3%, with American Eagle marque income down by 2% and Aerie by 4%.

AEO anticipates reporting a GAAP operating nonaccomplishment astir $85m for the quarter, with an adjusted operating nonaccomplishment of astir $68m. The adjusted nonaccomplishment reflects heightened promotional enactment and includes an inventory complaint nearing $75m owed to discounts connected seasonal merchandise.

In its fiscal 2024 study released this March, gross for the archetypal 4th was expected to diminution mid-single-digit diminution and operating income was projected to beryllium betwixt $20m and $25m.

The GAAP operating nonaccomplishment encompasses an further complaint of astir $17m for plus impairment and restructuring costs, chiefly linked to shutting down 2 organisation centres arsenic portion of AEO's proviso concatenation optimisation efforts.

Schottenstein added: "We person entered the 2nd 4th successful a amended position, with inventory much aligned to income trends. Additionally, we are actively evaluating our guardant plans. Our teams proceed to enactment with urgency to fortify merchandise performance, portion improving our buying principles."

"American Eagle Outfitters pulls 2025 outlook connected ‘disappointing’ Q1" was primitively created and published by Just Style, a GlobalData owned brand.

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