AEO Reports Preliminary Q1 Results; Sees Q1 Revenue $1.1B Down ~3% YoY; Withdraws FY25 Guidance

Benzinga
14 May

AEO Inc. Reports Preliminary First Quarter Results

Preliminary Results Reflect An Inventory Write Down to Better Align with Demand Trends, and Asset Impairment Charges

Withdrawing Fiscal Year 2025 Guidance

PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE:AEO) today reported preliminary financial results for the first quarter ended May 3, 2025.

For the first quarter of 2025, revenue is expected to be approximately $1.1 billion, which represents a decline of roughly 5% compared to the first quarter of last year. Comparable sales are expected to be down approximately 3%, with American Eagle down 2% and Aerie down 4%. Management expects a GAAP operating loss of approximately $85 million and an adjusted operating loss of approximately $68 million for the quarter.

The adjusted operating loss reflects higher than planned promotional activity in the quarter and an inventory charge of roughly $75 million related to a write-down of spring and summer merchandise. The GAAP operating loss includes an additional asset impairment and restructuring charge of approximately $17 million, primarily related to closing two fulfillment centers as part of its supply chain network optimization project.

At this time, the company is withdrawing its previously provided fiscal year 2025 guidance due to macro uncertainty and as management reviews forward plans in the context of first quarter results.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10