American Eagle Withdraws 2025 Guidance, Warns $75M Inventory Loss

American Eagle Outfitters has withdrawn its 2025 financial guidance and warned of disappointing first-quarter results due to macroeconomic uncertainty and challenges with merchandise performance. The retailer anticipates a 5% revenue decline to about $1.1 billion and a 3% drop in comparable sales, with its Aerie brand experiencing a 4% decrease. The company reported a $75 million inventory write-down on unsold spring and summer merchandise, coupled with increased promotional spending, leading to an expected operating loss of approximately $85 million. CEO Jay Schottenstein attributed the poor performance to merchandising strategies that failed to meet expectations, resulting in excess inventory and higher promotions. Shares of American Eagle fell sharply, reflecting investor concern, with options traders showing significant put-buying activity indicative of bearish sentiment. The company is taking steps to realign inventory with sales trends and improve product performance while reassessing its forward plans amid ongoing economic and geopolitical uncertainties.