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May 03
American Eagle Q1 2025 Earnings Report
American Eagle reported a net loss and lower revenues in a challenging Q1 2025.
Key Takeaways
American Eagle posted a net loss of $64.9 million in Q1 2025 with revenues down 5% year-over-year, impacted by weaker sales and inventory writedowns. Adjusted EPS came in at -$0.29.
Net revenue declined 5% year-over-year to $1.09 billion.
GAAP net loss was $64.9 million; adjusted net loss was $51.8 million.
Gross margin fell significantly to 29.6%, driven by inventory writedowns and markdowns.
The company maintained its FY25 outlook withdrawal amid macro uncertainty.
American Eagle
American Eagle
American Eagle Revenue by Segment
Revenue by Segment
American Eagle Revenue
CapyFin.comAerie Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Management expects Q2 operating income between $40M and $45M, with revenue and gross margin projected to remain under pressure.
Positive Outlook
- Expected Q2 operating income of $40M to $45M
- SG&A expected to remain flat year-over-year
- Ongoing $200M accelerated share repurchase on track for Q2 completion
- Weighted average share count expected to decline to ~175 million
- Capital expenditures revised down to $275M from $300M
Challenges Ahead
- Revenue projected to decline 5% in Q2
- Comparable sales expected to fall 3%
- Gross margin expected to decline year-over-year
- No updated FY25 guidance due to macro uncertainty
- Higher product costs and markdowns continue to pressure profitability
Revenue & Expenses
Visualization of income flow from segment revenue to net income