AEO Inc. Reports Preliminary First Quarter Results

Preliminary Results Reflect An Inventory Write Down to Better Align with Demand Trends, and Asset Impairment Charges

Withdrawing Fiscal Year 2025 Guidance

PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE:AEO) today reported preliminary financial results for the first quarter ended May 3, 2025.

For the first quarter of 2025, revenue is expected to be approximately $1.1 billion, which represents a decline of roughly 5% compared to the first quarter of last year. Comparable sales are expected to be down approximately 3%, with American Eagle down 2% and Aerie down 4%. Management expects 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 in the quarter and an inventory charge of roughly $75 million related to a write-down of spring and summer merchandise. The GAAP operating loss includes an additional asset impairment and restructuring charge of approximately $17 million, primarily related to closing two fulfillment centers as part of its supply chain network optimization project.

At this time, the company is withdrawing its previously provided fiscal year 2025 guidance due to macro uncertainty and as management reviews forward plans in the context of first quarter results.