American Eagles costumers fell to first-quarter losses, higher fees and slow demand

The U.S. Hawks’ management team acknowledged that the first quarter (Q1) presented a major challenge. However, as the quarter grew, it achieved its sales target.

It has encountered sales setbacks in several major categories, which will be exacerbated by cool spring weather and a slow start in February.

Jay Schottenstein, Executive Chairman and CEO of the AEO Board, said: “As we pointed out in the preliminary release, the first quarter was a tough time for our business. Although we were disappointed with the results, we are taking action to better position the company and improve strong performance in the upcoming quarter. Our brand remains resilient. Our teams rely on both - all working hard while we maintain an advantage - our first-class is able to impose our first-class.

The main indicators of the American Eagles

AEO reported a total net income of $1.09 billion in the first quarter, down 5% from $11.4 billion in the first quarter.

The company's total sales volume was 3%, with sales of the American Eagle and Aerie brands down 2% and 4%, respectively.

Gross profit fell to $322.42 million for the quarter, with a gross margin of 29.6%.

As inventory writes down, higher price cuts in the season and higher product costs, commodity profit margins fell by 960 basis points.

The AEO reported sales, general and administrative expenses of $338.79 million, up 2% from $333.49 million in the first quarter.

The company reported a net loss of $6.489 million for the quarter, compared with a net income of $67.75 million for the same period last year.

prospect

AEO announced last month that full-year guidance is still being withdrawn amid ongoing market uncertainty.

In the fiscal second quarter, the company expects revenue to fall by about 5% and comparable sales to about 3%.

Operating revenue for the quarter is expected to be between $40 million and $45 million.

AEO revised its capital expenditure in 2025 to an earlier estimate of $300 million, about $275 million.

"Cost loss for the American Eagles, higher cost loss, Sloghing Demption" was originally created and published by the brand Just Style owned by GlobalData.


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