American Eagle Stock Falls After Guidance Withdrawal

American Eagle Outfitters announced preliminary first-quarter results, indicating a 5% revenue decline to $1.1 billion and a 3% decrease in comparable sales. The company expects an adjusted operating loss of about $68 million, largely due to a $75 million inventory write-down on unsold spring and summer merchandise and heavy promotional activity. An additional $17 million restructuring charge is tied to the closure of two fulfillment centers. American Eagle has withdrawn its full-year 2025 guidance, citing macroeconomic uncertainty and weak consumer demand. The announcement triggered a sharp drop in the retailer's share price. Management acknowledged merchandising missteps but stated that inventory is now better aligned with current sales trends.