American Eagle Outfitters withdraw Outlook Fy25 as Q1 revenues for 5 % decrease

Global Eagle Outfitters (AEO) retailers withdrew their financial guidelines for the fiscal year 2025 (FY25), noting the prevailing total economic uncertainty and the need for management to reassess future strategies in light of the recent first -class tanks (Q1).

The initial financial statements of the company for the first quarter indicate expected revenues of about $ 1.1 billion, which represents a decrease of approximately 5 % compared to the same period in the previous year.

The expected expected sales numbers show a decrease of about 3 %, as the American Eagle brand witnessed a decrease of 2 % and Aerie with a 4 % decrease.

For a quarter, AEO offers a generally accepted operating loss (GAAP) in the neighboring area of ​​$ 85 million, as well as a modified operating loss of $ 68 million.

The company notes that the modified number shows the increasing promotional activities that exceeded initial plans and include an inventory fee of approximately $ 75 million due to discounts in spring and summer, as the company notes.

The GAAP operating loss includes additional fees on weak assets and restructuring, as a total of $ 17 million.

This charge is primarily linked to the closure of the two centers of fulfillment, a measure taken as part of the AEO initiative to improve its supply chain network.

“We were clearly disappointed with our implementation in the first quarter. Promotion strategies did not push the results we expected, which led to high promotional offers and excess stock. As a result, we took stockpiles in spring and summer models,” said AEO CEO and CEO of the Board of Directors, Jay Shottinstein.

“We have entered the second quarter in a better position, with a more compatible stock with sales trends. In addition, we actively assess our futures plans. Our teams continue to work urgently to enhance the performance of the product, while improving our purchase principles.”

In fiscal year 24, I informed AEO Total net revenue of $ 5.32 billionAn increase of 1 % from 5.26 billion dollars in the 23rd fiscal year.

“American Eagle Outfitters withdraws Outlook Fy25 as Q1 revenues for a decrease of 5 %” that was originally created and published Retail networkThe brand owned by Globaldata.

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