Young adult apparel retailer American Eagle Outfitters (NYSE:AEO) met Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 4.7% year on year to $1.09 billion. On the other hand, next quarter’s revenue guidance of $1.23 billion was less impressive, coming in 0.8% below analysts’ estimates. Its non-GAAP loss of $0.29 per share was 32.6% below analysts’ consensus estimates.
Shares of American Eagle Outfitters Inc. (NYSE: AEO) are trading lower Thursday after the retailer reported weaker-than-expected financial results for the first quarter of fiscal 2025, after the bell.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Shares of young adult apparel retailer American Eagle Outfitters (NYSE:AEO) fell 6.9% in the morning session after the company pulled its financial outlook for the year, citing "macro uncertainty." It also planned to write down $75 million in spring and summer merchandise.
First-quarter sales are projected to decline by 5%, reflecting weakening consumer demand or competitive pressures. The company also anticipates an adjusted operating loss of approximately $68 million, driven by the inventory write-down and increased promotional spending.
This announcement limits visibility into future performance and might undermine investor confidence in the near term.
American Eagle Outfitters Inc. (NYSE: AEO) shares are trading lower Wednesday after the company issued a profit warning and withdrew its full-year 2025 guidance.
