American Eagle Outfitters withdraws guidance after millions in write-downs on inventories
US clothing group American Eagle Outfitters withdrew its forecasts for the full year following disappointing preliminary figures for the first quarter.
Revenues are expected to fall by 5 percent to 1.1 billion dollars. Sales at the main brand American Eagle fell by 2 percent, and at the activewear label Aerie by 4 percent. An adjusted operating loss of approximately 68 million dollars is also expected. Excess inventories
The group attributed the adjusted operating loss to higher-than-planned advertising expenses and an inventory write-down of approximately 75 million dollars for summer and winter goods. Back in March, American Eagle Outfitters stated that inventories of 637 million dollars 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 deliver the results we anticipated, leading to higher promotional costs and excess inventories. As a result, we have taken an inventory write-down on spring and summer goods,' said chief executive officer (CEO) Jay Schottenstein in a statement on Tuesday. Forecast withdrawn
Given the business development in the first quarter and macroeconomic uncertainties, the company is withdrawing its forecasts for the full year. In March, American Eagle Outfitters still expected revenue to decline by a low single-digit percentage in 2025, while operating income would be approximately 360 to 375 million dollars.
'We have started the second quarter in a better position and have better aligned our inventories with sales performance. We are also actively reviewing our future plans,' added Schottenstein. 'Our teams continue to work with vigour to increase product performance while improving our purchasing.'
The group plans to announce its final business figures for the first quarter on May 29. This article was translated to English using an AI tool.
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