A customer enters an American Eagle store on April 4, 2025 in Miami, Florida.
Joe Raedle | Getty images
American eagle On Tuesday, he said that he is recruiting $ 75 million in spring and summer goods and withdrawing his annual directives all year round, because it concerns slow sales, steep reduction and an uncertain economy.
The clothing retailer said he expects revenues in the first quarter, which ended at the beginning of May, about $ 1.1 billion, a drop of about 5% compared to the period of the previous year. American Eagle provides that comparable sales will drop by 3%, led by an expected drop of 4% at Intimates Brand Aerie. American Eagle expected preceding that the first quarter sales were down by a percentage in half-tour and the sales scheduled in full year would drop from a low percentage to a figure.
Actions have plunged more than 17% in prolonged exchanges.
When he declared budgetary results of the fourth quarter in March, American Eagle warned that the first quarter had left for a slower than expected start “, due to low demand and cold. The conditions obviously aggravated as the district progressed and the retailer turned into high discounts to move the inventory.
Consequently, American Eagle expects to see an operating loss of approximately $ 85 million and an adjusted operating loss, which reduces the unique costs linked to its restructuring, by around 68 million dollars for the quarter. This loss reflects the “greater than that” discount and an inventory charge of $ 75 million linked to a strict spring and summer goods, said the company.
“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not conduct the results we have planned, which led to higher promotions and excess inventories. Consequently, we wrote an inventory on spring and summer goods,” said CEO Jay Schotenstein.
“We entered the second quarter in a better position, more aligned stocks on sales trends,” he said. “In addition, we actively assess our term plans. Our teams continue to work urgently to strengthen product performance, while improving our purchasing principles.”
The company added that it retired its directives for the 2025 “” due to macro uncertainty and that management examines the plans to be transmitted in the context of the first quarter results “. It is not clear if the recent pricing policy changes have had an impact on American Eagle.
Some companies bought stocks earlier than usual to plan higher tasks, but American Eagle said on several occasions in March that he was in a solid inventory position and was able to leave after trends over customer preferences.
At the beginning of the first quarter, the company said it had inventory failures and had to complete actions in some key categories, in particular at Aerie, one of its main growth engines.