The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Business

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

by admin May 15, 2025
May 15, 2025
American Eagle shares plunge 17% after it withdraws guidance, writes off $75 million in inventory

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
FacebookTwitterGoogle +Pinterest
previous post
YouTube will stream NFL Week 1 game in Brazil for free
next post
Biden’s pandemic playbook failed. Trump just offered a smarter path forward

Related Posts

What the Ticketmaster-Live Nation lawsuit could mean for...

May 25, 2024

Protesters stage sit-in outside New York Stock Exchange...

October 16, 2024

Meta announces end of its DEI programs. Read...

January 11, 2025

Rush orders, cut costs, crossed fingers: How small...

December 2, 2024

Starbucks imposes new limits on what baristas can...

April 24, 2025

Surging AI demand could cause the world’s next...

September 27, 2024

Amazon sued by D.C. AG for allegedly excluding...

December 5, 2024

Trump’s deals to sell Bibles, sneakers and perfume...

April 2, 2024

Fed Chair Powell says ‘time has come’ for...

August 25, 2024

Nvidia results spark global chip rally

May 30, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Bed Bath & Beyond relaunches with first store in Nashville, plans dozens more

      August 10, 2025
    • The Real Drivers of This Market: AI, Semis & Robotics

      August 10, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      August 10, 2025
    • Sydney Sweeney jeans controversy making advertising great again

      August 10, 2025
    • Nagasaki mayor issues chilling warning on 80th anniversary of atomic bombing

      August 10, 2025
    • Kash Patel celebrates major FBI achievements and record seizures during Trump’s first 200 days in office

      August 10, 2025

    Categories

    • Business (1,330)
    • Politics (4,206)
    • Stocks (1,577)
    • Uncategorized (45)
    • World News (1,323)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, 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 thetraderharbor.com | All Rights Reserved