Data News > American Eagle Stock Plummets After Withdrawing 2025 Outlook
- American Eagle Outfitters (AEO) stock drops in extended trading after pulling its 2025 outlook due to disappointing first-quarter results.
- The company cited macroeconomic uncertainty as a reason for withdrawing guidance, leading to a 17% plunge in shares.
- American Eagle took a $75 million write-off related to spring and summer merchandise, expecting a 3% decline in comparable sales and a 5% decrease in overall sales for the first fiscal quarter.
- The retailer's new merchandising strategies did not meet expectations with teen and young-adult consumers.
- AEO Inc. reported a GAAP operating loss of approximately $85 million for the first quarter of 2025.
American Eagle Outfitters' stock took a hit in extended trading on Tuesday after the company decided to pull its 2025 outlook following disappointing preliminary results. The apparel retailer, popular among teens and young adults, cited macroeconomic uncertainty as the primary reason for scrapping its guidance, as predicting consumer spending has become increasingly challenging.
As a consequence of withdrawing its outlook, American Eagle shares plummeted by 17%, leading to concerns among investors. The company also announced that it would be taking a $75 million write-off related to its spring and summer merchandise, further impacting its financial outlook for the year.
Despite trying new styles for the spring and summer seasons, American Eagle admitted that its merchandising strategies did not have the desired impact on consumers. This resulted in higher-than-planned markdowns and ultimately contributed to a surprise loss for the retailer.
In its preliminary financial report for the first quarter of 2025, AEO Inc. revealed that revenue is expected to be approximately $1.1 billion, reflecting a 5% decline compared to the same period last year. Comparable sales are forecasted to be down by 3%, with American Eagle experiencing a 2% decrease and Aerie seeing a 4% drop in sales. Additionally, the company reported a GAAP operating loss of around $85 million for the first quarter.
As American Eagle stock continues to face volatility in the market, investors are closely watching to see if the retailer will be able to rebound from its recent setbacks and regain investor confidence in its ability to drive sales and profitability in the future.
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American Eagle Stock Plummets After Withdrawing 2025 Outlook
By KlickAnalytics Data Insights | May 13, 2025 08:02PM ET
Key Points
- American Eagle Outfitters (AEO) stock drops in extended trading after pulling its 2025 outlook due to disappointing first-quarter results.
- The company cited macroeconomic uncertainty as a reason for withdrawing guidance, leading to a 17% plunge in shares.
- American Eagle took a $75 million write-off related to spring and summer merchandise, expecting a 3% decline in comparable sales and a 5% decrease in overall sales for the first fiscal quarter.
- The retailer's new merchandising strategies did not meet expectations with teen and young-adult consumers.
- AEO Inc. reported a GAAP operating loss of approximately $85 million for the first quarter of 2025.
American Eagle Outfitters' stock took a hit in extended trading on Tuesday after the company decided to pull its 2025 outlook following disappointing preliminary results. The apparel retailer, popular among teens and young adults, cited macroeconomic uncertainty as the primary reason for scrapping its guidance, as predicting consumer spending has become increasingly challenging.
As a consequence of withdrawing its outlook, American Eagle shares plummeted by 17%, leading to concerns among investors. The company also announced that it would be taking a $75 million write-off related to its spring and summer merchandise, further impacting its financial outlook for the year.
Despite trying new styles for the spring and summer seasons, American Eagle admitted that its merchandising strategies did not have the desired impact on consumers. This resulted in higher-than-planned markdowns and ultimately contributed to a surprise loss for the retailer.
In its preliminary financial report for the first quarter of 2025, AEO Inc. revealed that revenue is expected to be approximately $1.1 billion, reflecting a 5% decline compared to the same period last year. Comparable sales are forecasted to be down by 3%, with American Eagle experiencing a 2% decrease and Aerie seeing a 4% drop in sales. Additionally, the company reported a GAAP operating loss of around $85 million for the first quarter.
As American Eagle stock continues to face volatility in the market, investors are closely watching to see if the retailer will be able to rebound from its recent setbacks and regain investor confidence in its ability to drive sales and profitability in the future.
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