American Eagle Outfitters Inc. reported preliminary financial results for the first quarter of 2025, ending May 3. The company expects revenue to be approximately $1.1 billion, reflecting a 5% decline compared to the first quarter of the previous year. Comparable sales are anticipated to decrease by roughly 3%, with American Eagle down 2% and Aerie down 4%. The management projects a GAAP operating loss of around $85 million and an adjusted operating loss of approximately $68 million for the quarter. This adjusted operating loss accounts for higher-than-planned promotional activity and an inventory charge of about $75 million due to excess inventory and the write-down of spring and summer merchandise. The GAAP operating loss also includes an additional asset impairment and restructuring charge of around $17 million, primarily related to closing two fulfillment centers as part of a supply chain network optimization project. As a result of these preliminary outcomes and macroeconomic uncertainties, American Eagle Outfitters has withdrawn its previously provided fiscal year 2025 guidance. The company is actively evaluating forward plans and has entered the second quarter with inventory more aligned to sales trends. Final first-quarter results are expected to be announced on May 29, 2025.