• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

American Eagle shares plunge 17% after it withdraws guidance, writes off $75 million in inventory

by May 14, 2025
written by May 14, 2025

American Eagle on Tuesday said it is writing off $75 million in spring and summer merchandise and withdrawing its full-year guidance as it contends with slow sales, steep discounting and an uncertain economy.

The apparel retailer said it expects revenue in the first quarter, which ended in early May, to be around $1.1 billion, a decline of about 5% compared to the prior-year period. American Eagle anticipates comparable sales will drop 3%, led by an expected 4% decline at intimates brand Aerie. American Eagle previously expected first-quarter sales to be down by a mid-single-digit percentage and anticipated full-year sales would drop by a low single-digit percentage. 

Shares plunged more than 17% in extended trading. 

When it reported fiscal fourth-quarter results in March, American Eagle warned that the first quarter was off to a “slower than expected” start, due to weak demand and cold weather. Conditions evidently worsened as the quarter progressed, and the retailer turned to steep discounts to move inventory.

As a result, American Eagle is expecting to see an operating loss of around $85 million and an adjusted operating loss, which cuts out one-time charges related to its restructuring, of about $68 million for the quarter. That loss reflects “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise, the company said. 

“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein.

“We have entered the second quarter in a better position, with inventory more aligned to sales trends,” he said. “Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.” 

The company added it is withdrawing its fiscal 2025 guidance “due to macro uncertainty and as management reviews forward plans in the context of first quarter results.” It is unclear if recent tariff policy changes had an effect on American Eagle.

Some companies bought inventory earlier than usual to plan for higher duties, but American Eagle repeatedly said in March that it was in a solid inventory position and was able to go after trends as customer preferences shifted. 

At the start of the first quarter, the company said it had some inventory outages and needed to supplement stock in a few key categories, particularly at Aerie, one of its primary growth drivers. 

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Republicans say they’re ‘out of the loop’ on Trump’s $400M Qatari plane deal
next post
WATCH: RFK Jr Senate hearing disrupted by screaming protesters: ‘RFK kills people with hate’

related articles

Trump demands resignation of Intel CEO over alleged...

August 7, 2025

Claire’s, known for piercing millions of teens’ ears,...

August 7, 2025

Tim Cook to join Trump at White House...

August 7, 2025

Fox One streaming service to launch ahead of...

August 6, 2025

Murdoch to provide Trump health updates in deal...

August 6, 2025

U.S. farm agency allows six more states to...

August 5, 2025

Amazon lays off over 100 employees in Wondery...

August 5, 2025

All major Las Vegas Strip casinos are now...

August 5, 2025

Columbia Sportswear sues Columbia University, alleging trademark infringement

August 4, 2025

JPMorgan marks 1,000th branch opening since 2018 expansion...

August 1, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Trump’s hostage envoy Boehler met with Taliban in Kabul in first in-person meeting since takeover

    March 21, 2025
  • Speaker Johnson says House will match Trump’s pace as Democrats are left ‘flailing’

    February 9, 2025
  • USAID reportedly bankrolled al Qaeda terrorist’s college tuition, unearthed records show

    February 10, 2025
  • Trump energy plan will avoid Europe’s energy disaster

    January 8, 2025
  • Speaker Johnson reaches tentative deal with blue state Republicans to boost cap on ‘SALT’ deduction

    May 21, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,659)
  • Investing (634)
  • Stock (876)

Latest Posts

  • A tricky start to 2025

    January 9, 2025
  • With 29 days until voting starts, ‘election season’ kicks off sooner than you think

    August 8, 2024
  • DOGE subcommittee holds first hearing slamming $36T national debt, as House Republicans declare ‘war on waste’

    February 13, 2025

Recent Posts

  • White House highlights Pelosi hypocrisy after Schiff demands Trump admin financial, ethics docs

    June 5, 2025
  • June home sales slump as median sales price rises to $426,900

    July 24, 2024
  • ‘Not fit to serve’: Speaker Johnson leads GOP demands for Biden to resign from presidency

    July 21, 2024

Editor’s Pick

  • 1 in 3 Democrats believe Trump faked assassination attempt. I talked to one

    July 21, 2024
  • Opinion: Look to outer space for Trump’s Greenland playbook ambitions amid Russia, China Arctic advances

    February 6, 2025
  • Israel’s Netanyahu departs for US to meet with Trump, hoping to strengthen ties with Washington

    February 2, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock