American Eagle withdraws in 2025 pointers, in keeping with the primary quarter than anticipated
On April 4, 2025, one customer enters an American Eagle Store in Miami, Florida.
Joe Raedle | Getty pictures
American eagle On Tuesday, there was known that it will be copying $ 75 million in spring and summer goods and withdrawing its guidance of the year because it is fighting with slow sales, steep discounts and an insecure economy.
The clothing dealer expects a decrease of around 5% to be decreased in the first quarter of around $ 1.1 billion in the first quarter, which was around $ 1.1 billion compared to the same period in the previous year. American Eagle assumes that a comparable sales will decrease by 3%, led by an expected decline of 4% with intimate brand aerie. American Eagle previously expected that sales in the first quarter will be due to a percentage percentage with medium settings, and expected the turnover of the year as a whole would decrease by a low percentage percentage.
The shares fell by more than 17% of the extended trade.
When the fourth quarter reported in March in March, American Eagle warned that the first quarter was exposed to a “slower than expected” start due to the weak demand and the cold weather. The conditions obviously deteriorated in the course of the quarter, and the retailer turned to strong discounts to move the inventory.
As a result, American Eagle expects an operational loss of around $ 85 million and an adjusted loss of business, which reduces one-time fees in connection with its restructuring of around $ 68 million for the quarter. This loss reflects the “higher than planned” discounting and an inventory fee of $ 75 million, which relate to a depreciation of spring and summer goods, according to the company.
“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not promote the results we expected, which led to higher advertising campaigns and excess inventory. As a result, we wrote down an inventory for spring and summer goods,” said CEO Jay Schottenstein.
“We have entered the second quarter in a better position, with the inventory more tailored to sales trends,” he said. “In addition, we actively evaluate our forward plans. Our teams continue to work with urgency to strengthen the product performance and at the same time improve our purchase principles.”
The company added that it is withdrawing its instructions for the 2025 financial year, “due to the macro uncertainty and the review of plans for management in the context of the results of the first quarter”. It is unclear whether changes in the latest tariff policy have an impact on the American eagle.
Some companies bought the existence earlier than usual to plan higher tasks, but American Eagle repeatedly said in March that it was in a solid existing point and that trends were able to pursue the customer preferences.
At the beginning of the first quarter, the company announced that it had some existing failures and that the shares must complement the shares in a few key categories, especially in aerie, one of its primary growth drivers.
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