The American clothing group American Eagle Outfitters withdraw its forecasts for the overall year after disappointing preliminary figures for the first quarter.
The proceeds are expected to fall by 5 percent to $ 1.1 billion (980 million euros). At the main brand American Eagle, sales decreased by 2 percent and 4 percent in the Activewear label Aerie. In addition, an adjusted loss of operations of around $ 68 million is expected.
Excess stocks
The group declares the adjusted loss of business with higher than planned advertising expenditure and an inventory depreciation of around 75 million for summer and winter goods. In March, American Eagle Outfitters stated that the stocks at $ 637 million were “healthy and well positioned for the spring season”.
“We are clearly disappointed with our performance in the first quarter. The merchandising strategies did not bring the results we expected, which led to higher doctoral costs and excess stocks. As a result, we have made an inventory to spring and summer goods,” said Managing Director Jay Schottenstein in a message on Tuesday.
Forecast
In view of business development in the first quarter and macroeconomic uncertainties, the company withdraws its forecasts for the year as a whole. American Eagle Outfitters expected in March that sales would decrease by a low single-digit percentage in 2025, while the operating result would be around $ 360 to $ 375 million.
“We started in a better position in the second quarter and better adapted our inventory to the sales development. We also actively examine our future plans,” added Schottenstein. “Our teams continue to work to increase the product performance and improve our purchase at the same time”
The group plans to announce its final business figures for the first quarter on May 29.