earnings
confidence high
sentiment negative
materiality 0.85
AEO Q1 operating loss of $85M; gross margin collapses to 29.6%; Q2 guidance weak
AMERICAN EAGLE OUTFITTERS INC
2025-Q1 EPS reported
-$0.36
revenue$1,089,599,000
- Net revenue $1.1B (-5% YoY); total comparable sales -3% (Aerie -4%, AE -2%).
- GAAP operating loss $(85)M; adjusted operating loss $(68)M; diluted EPS $(0.36), adjusted $(0.29).
- Gross margin 29.6% vs 40.6% a year ago; merchandise margins down 960 bps due to writedowns and markdowns.
- Q2 FY2025 outlook: revenue -5%, operating income $40-45M; full-year fiscal 2025 guidance withdrawn.
- Closed $31M in open-market buybacks; on track to complete $200M ASR in Q2; dividend $0.125/share.
item 2.02item 9.01