American Eagle Outfitters, Inc. reported preliminary financial results for the first quarter ended May 3, 2025, on May 13, 2025, indicating a challenging period. The company expects Q1 revenue to be approximately $1.1 billion, representing a decline of roughly 5% compared to the prior year.
Comparable sales are projected to decrease by approximately 3%, with American Eagle down 2% and Aerie down 4%. Management anticipates 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 and a significant $75 million inventory charge related to a write-down of spring and summer merchandise. The GAAP operating loss also includes an additional $17 million asset impairment and restructuring charge, primarily due to the closure of two fulfillment centers as part of a supply chain optimization project. Due to macroeconomic uncertainty and a review of forward plans, the company has withdrawn its previously provided fiscal year 2025 guidance.
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