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American Eagle Outfitters Logs Q1 Loss, Pulls Annual Guidance and Continues Share Buybacks

A $75 million merchandise write-down drove the retailer to predict another quarter of declining sales.

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A view of an American Eagle Outfitters store in Arlington, Virginia, U.S., June 1, 2021. REUTERS/Erin Scott/File Photo
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Overview

  • First-quarter revenue fell 5% to $1.09 billion, matching expectations but down from $1.14 billion a year earlier.
  • An $85 million operating loss included a $75 million charge on spring and summer inventory.
  • Comparable sales declined 3%, with Aerie off 4% and the American Eagle brand down 2%.
  • The company is on track to complete a $200 million accelerated share repurchase program and has reduced its full-year capital expenditure forecast to $275 million.
  • After withdrawing its fiscal 2025 outlook, it expects second-quarter revenue to drop another 5% and operating income of $40 million to $45 million.