American Eagle Withdraws Guidance After $85M Loss

American Eagle Outfitters reported a 5% revenue decline to $1.1 billion and a 3% drop in comparable sales for the first quarter, leading the company to withdraw its full-year 2025 guidance amid ongoing economic uncertainty. The retailer posted a GAAP operating loss of around $85 million and an adjusted operating loss of $68 million, primarily due to heavy discounting and a $75 million inventory charge tied to unsold spring and summer merchandise. An additional $17 million in restructuring costs resulted from the closure of two fulfillment centers as part of supply chain optimization. CEO Jay Schottenstein acknowledged that merchandising missteps led to excess inventory and increased promotions but noted that inventory levels are now better aligned with sales trends. The company is actively reviewing plans to improve product performance and buying strategies. Final first quarter results will be released on May 29, 2025.