American Eagle Outfitters (AEO) has a difficult first quarter.
Net sales fell by five percent to $ 1.1 billion (960 euros). The comparable sales decreased by three percent. Both key brands recorded declines. Aerie’s comparable sales fell by four percent. The comparable sales of American Eagle decreased by two percent. In view of the macroeconomic uncertainty and the results of the first quarter, American Eagle Outfitter has withdrawn its outlook for the 2025 financial year.
AEO CEO Jay Schottenstein admitted the disappointing results. However, he emphasized that the company takes urgent measures to improve the performance in the upcoming quarters: “As already mentioned in our preliminary publication, the first quarter was a challenging time for our business. We are disappointed with the results, but take measures to better position the company. High pressure to strengthen both sales and the flow of profits. “
The profitability also shrank in the first quarter. The gross profit amounted to $ 322 million (281 million euros). The gross margin fell to 29.6 percent compared to 40.6 percent in the previous year. The company reported a loss of $ 85 million. The adjusted loss of business was $ 68 million.
For the second quarter of 2025, the company expects a drop in sales of five percent and a decline in comparable sales by three percent. The gross margin is expected to decrease compared to the previous year. The operating result is expected to be between $ 40 million and $ 45 million.
This article was used with digital tools translated.
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