By MICHELLE CHAPMAN, AP Enterprise Author
Shares of American Eagle Outfitters are tumbling Wednesday after the retailer withdrew its monetary outlook for the 12 months citing “macro uncertainty” and mentioned it will write down $75 million in spring and summer season merchandise.
American Eagle mentioned late Tuesday that it expects first-quarter income to slip 5%, or greater than $1 billion. Similar-store gross sales, a key gauge of a retailer’s well being, are projected to fall about 3%.
The Pittsburgh firm foresees a first-quarter adjusted working lack of about $68 million as a result of stock write-down in addition to heavier spending on promotions.
The corporate’s inventory slumped 7% early on Wednesday.
CEO and Government Chairman Jay Schottenstein mentioned the retailer is sad with its execution throughout the first quarter.
“Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory,” Schottenstein mentioned in a press release. “As a result, we have taken an inventory write down on spring and summer goods.”
Numerous corporations throughout a number of sectors have withdrawn monetary steerage this 12 months as a U.S.-led commerce struggle creates uncertainty about prices for imported items. The large shift in U.S. commerce coverage has unsettled shoppers as effectively and there are early indicators that will People have gotten extra considered about spending.
American Eagle cited macro uncertainty because it pulled it 2025 monetary steerage because it critiques future plans.
Schottenstein mentioned American Eagle is in a greater place for the second quarter, with stock extra aligned to gross sales developments.
“Our teams continue to work with urgency to strengthen product performance, while improving our buying principles,” he mentioned.
Paul Lejuez of Citi Funding Analysis mentioned in a be aware to shoppers that he expects American Eagle to aggressively minimize its stock plans for the second half of the 12 months and to concentrate on value management.
“With the demand picture less clear and margin pressure from tariffs, promos and freight, American Eagle is in a tough spot to navigate the current uncertain environment,” he wrote.
American Eagle stories first-quarter monetary outcomes on Could 29.
Initially Printed: Could 14, 2025 at 10:10 AM EDT
