American Eagle Outfitters Inc Stock Price, News & Analysis

AEO reported challenging Q1 FY2025 results with a GAAP operating loss of $(85) million and adjusted operating loss of $(68) million. Total revenue declined 5% to $1.1 billion, with Aerie comparable sales down 4% and American Eagle down 2%. Gross margin contracted significantly to 29.6% from 40.6%, primarily due to inventory writedowns and higher markdowns. The company reported a diluted loss per share of $(0.36), or $(0.29) adjusted. On the positive side, AEO is executing a $200 million accelerated share repurchase program expected to complete in Q2, representing about 9.5% of outstanding shares. For Q2 FY2025, AEO projects operating income of $40-45 million with revenue expected to decline 5%. The company has withdrawn its full-year 2025 outlook due to macro uncertainty.

American Eagle Outfitters (NYSE: AEO) reported disappointing preliminary Q1 2025 results, with revenue declining ~5% to $1.1 billion and comparable sales down 3%. American Eagle brand saw a 2% decline while Aerie dropped 4%. The company expects a GAAP operating loss of $85 million and adjusted operating loss of $68 million. The results include a significant $75 million inventory write-down for spring/summer merchandise due to higher promotional activity, and a $17 million restructuring charge related to closing two fulfillment centers. Due to macro uncertainty and Q1 performance, AEO has withdrawn its fiscal year 2025 guidance. Management acknowledged merchandising strategy failures and is focusing on strengthening product performance and improving buying principles.

Synchrony (NYSE: SYF) has announced a multi-year extension of its partnership with American Eagle Outfitters (NYSE: AEO) to continue managing their credit programs. The nearly three-decade partnership focuses on providing the Real Rewards credit card program for American Eagle and Aerie customers.

The partnership features both store-specific Real Rewards credit cards for use at American Eagle and Aerie locations, as well as Real Rewards Visa credit cards accepted wherever Visa is accepted. The program offers rewards and special discounts to AEO customers, and has been recognized as one of America's Best Loyalty Programs by Newsweek for five consecutive years. Additionally, the Real Rewards Credit Card was named Money's Best Retail Credit Card: In-Store Rewards for 2025.

American Eagle Outfitters (NYSE: AEO) has announced a $200 million accelerated share repurchase (ASR) agreement with Bank of America. The program will repurchase approximately 18.1 million shares, representing about 9.5% of the company's fully diluted outstanding stock.

The ASR will be executed under the company's existing share repurchase authorization of 68.5 million shares. The initiative, combined with AEO's quarterly cash dividend, demonstrates the company's commitment to balanced capital allocation and shareholder returns, while reflecting its strong capital position and confidence in long-term strategic growth plans.

American Eagle Outfitters (NYSE: AEO) has announced a quarterly cash dividend of $0.125 per share. The dividend was declared on March 11, 2025, and will be paid to stockholders of record as of April 11, 2025. The payment is scheduled for April 25, 2025.

American Eagle Outfitters (AEO) reported strong results for Q4 and fiscal year 2024, with total comparable sales up 3% in Q4 and 4% for the full year. Aerie achieved record revenue with Q4 comp growth of 6% and fiscal year comp growth of 5%, while American Eagle saw comp growth of 1% in Q4 and 3% for the year.

Q4 total net revenue was $1.6 billion, with operating income of $142 million. For fiscal year 2024, the company reported total net revenue of $5.3 billion and GAAP operating income of $427 million. Adjusted operating income increased 19% to $445 million.

The company returned over $190 million to shareholders through share repurchases in 2024 and announced a new authorization for an additional 50 million shares. However, AEO noted a slower start to Q1 2025 due to less robust demand and colder weather, leading to proactive steps to strengthen top-line, manage inventory, and reduce expenses.

American Eagle Outfitters (NYSE: AEO) has announced it will release its fourth quarter and full-year fiscal 2024 results after market close on March 12th, 2025. The company will host a conference call and webcast at 4:30pm Eastern time on the same day to discuss the results and review progress on its long-term strategic plan.

The conference call will be accessible via domestic (877-407-0789) and international (201-689-8562) dial-in numbers. A replay will be available through domestic (844-512-2921) and international (412-317-6671) numbers. The presentation will also be archived on AEO's website in the Investor Relations section.

American Eagle Outfitters (NYSE: AEO) has raised its fourth quarter profit outlook due to stronger-than-expected holiday sales. Comparable sales for the quarter-to-date, through January 4, 2025, have increased by low single digits, surpassing the previous guidance of a 1% rise. The company now anticipates an operating profit of approximately $135 million, up from the prior range of $125 million to $130 million. This projection is based on a comparable sales increase of around 2%, building on last year's 8% growth.

Despite a projected 5% decline in total revenue due to adverse impacts from the retail calendar, AEO reported record sales in December across its American Eagle and Aerie brands. CEO Jay Schottenstein highlighted the company's focus on operational efficiencies and product innovation, aiming for high-teens operating profit growth in 2024.

In terms of shareholder returns, AEO repurchased 1.5 million shares for $27 million in the fourth quarter-to-date, bringing the year-to-date total to 7.5 million shares for $158 million. The company has returned $231 million in cash to shareholders through dividends and buybacks so far this year.

American Eagle Outfitters (NYSE: AEO) has declared a quarterly cash dividend of $0.125 per share, payable on January 24, 2025, to stockholders of record as of January 10, 2025. The dividend was declared on December 10, 2024.

AEO operates as a global specialty retailer with multiple brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder, and Unsubscribed. The company maintains operations across the United States, Canada, and Mexico, while offering merchandise in over 30 countries through license partners and e-commerce platforms.