By Katherine Hamilton

American Eagle Outfitters swung to a loss in its first quarter, in line with the disappointing sales numbers it had guided for earlier in May.

The apparel retailer on Thursday posted a loss of $64.9 million, or 36 cents a share, in the first quarter, compared with a profit of $67.8 million, or 34 cents a share, a year earlier.

Stripping out certain one-time items, the adjusted per-share loss was 29 cents, wider than the 25-cent loss forecast by analysts, according to FactSet.

Revenue fell 5% to $1.09 billion. Analysts surveyed by FactSet forecast revenue of $1.10 billion.

Same-store sales decreased 3%, compared with the 2.8% decline projected by Wall Street. Aerie's same-store sales fell 4%, while American Eagle's namesake brand was down 2%.

Earlier in May, American Eagle pulled its full-year outlook because it was finding it too difficult to predict consumer spending because of macroeconomic volatility. It also posted lower-than-expected preliminary sales, citing higher promotions and excess inventory due to poor merchandising strategy.

"As we noted in our preliminary release, the first quarter was a challenging period for our business," Chief Executive Jay Schottenstein said. "While we are disappointed with the results, we are taking actions to better position the company."

Schottenstein said earlier that the Pittsburgh company took an inventory writedown on spring and summer goods.

Inventory for the season is now better aligned to sales trends following the writedown, American Eagle said Thursday.

In the second quarter, American Eagle expects revenue to fall 5% and same-store sales to be down 3%.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 29, 2025 16:40 ET (20:40 GMT)

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