American Eagle storefront with sale sign

(Joe Raedle/Getty Images)

“macro uncertainty”

American Eagle tumbles after warning of soft Q1 demand and yanking its full-year guidance

The Y2K-era retailer also said it wrote off $75 million worth of inventory.

5/14/25 9:08AM

Shares of American Eagle sank nearly 14% in premarket trading after the retailer posted disappointing preliminary Q1 results and pulled its full-year outlook.

The apparel brand now expects Q1 revenue to land around $1.1 billion — down 5% from a year ago. Comparable sales are expected to fall 3%, dragged down by a surprise 4% drop at its popular intimates line, Aerie.

Last quarter, AE warned that the year was off to a slower-than-expected start due to colder weather and softening demand. The company now expects an operating loss of about $85 million, or $68 million on an adjusted basis excluding one-time restructuring charges. The shortfall was driven by “higher than planned” discounting and a $75 million inventory write-down tied to unsold spring and summer merchandise.

American Eagle also pulled its fiscal 2025 guidance, citing “macro uncertainty” and the need to reassess its plans after a rocky start to the year. The company will drop full Q1 results next month. Shares were already down about 26% year to date before the latest dip.

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