American Eagle Reports Disappointing Q1 Results, Withdraws Guidance
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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.
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.
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