American Eagle tumbles after pulling financial guidance for 2025

MICHELLE CHAPMAN

Wed, May 14, 2025, 4:20 AM 2 min read

Shares of American Eagle Outfitters are tumbling earlier Wednesday's opening doorbell aft the retailer withdrew its fiscal outlook for the twelvemonth citing “macro uncertainty” and said it would constitute down $75 cardinal successful outpouring and summertime merchandise.

American Eagle said precocious Tuesday that it expects first-quarter gross to descent 5%, oregon much than $1 billion. Same-store sales, a cardinal gauge of a retailer's health, are projected to autumn astir 3%.

The Pittsburgh institution foresees a first-quarter adjusted operating nonaccomplishment of astir $68 cardinal owed to the inventory write-down arsenic good arsenic heavier spending connected promotions.

The company's banal slumped much than 14% successful premarket trading Wednesday.

CEO and Executive Chairman Jay Schottenstein said the retailer is unhappy with its execution during the archetypal quarter.

“Merchandising strategies did not thrust the results we anticipated, starring to higher promotions and excess inventory,” Schottenstein said successful a statement. "As a result, we person taken an inventory constitute down connected outpouring and summertime goods."

A ample fig of companies crossed aggregate sectors person withdrawn fiscal guidance this twelvemonth arsenic a U.S.-led commercialized war creates uncertainty astir costs for imported goods. The monolithic displacement successful U.S. commercialized argumentation has unsettled consumers arsenic good and determination are aboriginal signs that whitethorn Americans are becoming much judicious astir spending.

American Eagle cited macro uncertainty arsenic it pulled it 2025 fiscal guidance arsenic it reviews aboriginal plans.

Schottenstein said American Eagle is successful a amended presumption for the 2nd quarter, with inventory much aligned to income trends.

"Our teams proceed to enactment with urgency to fortify merchandise performance, portion improving our buying principles,” helium said.

Paul Lejuez of Citi Investment Research said successful a enactment to clients that helium expects American Eagle to aggressively chopped its inventory plans for the 2nd fractional of the twelvemonth and to absorption connected outgo control.

“With the request representation little wide and borderline unit from tariffs, promos and freight, American Eagle is successful a pugnacious spot to navigate the existent uncertain environment,” helium wrote.

American Eagle reports first-quarter fiscal results connected May 29.