American Eagle Outfitters announced disappointing first-quarter results, reporting a 5% revenue decline to approximately $1.1 billion and a projected operating loss of around $85 million. The company attributed the shortfall to weaker-than-expected demand, necessitating steep discounts and a $75 million inventory write-down on spring and summer merchandise. Comparable sales are expected to drop 3%, with Aerie experiencing a 4% decline. Due to the poor performance and economic uncertainty, American Eagle withdrew its full-year guidance. Shares plummeted over 17% in after-hours trading.

Prepared by Christopher Adams and reviewed by editorial team.