Overview

• American Eagle posted a first-quarter operating loss of $85.18 million on revenue of $1.09 billion.
• A $75 million write-down on spring–summer merchandise to align excess stock with demand helped drive gross margin down to 29.6 percent from 40.6 percent.
• Comparable sales fell 3 percent year-over-year, led by a 4 percent drop at Aerie and a 2 percent decline at American Eagle.
• The company withdrew its full-year guidance and now anticipates second-quarter revenue to fall 5 percent with operating income of $40 million to $45 million.
• To reinforce liquidity, it trimmed its annual capital expenditure forecast to $275 million and is set to complete a $200 million accelerated share repurchase.