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May 03, 2025
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.
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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