Core Viewpoint - American Eagle Outfitters Inc. issued a profit warning and withdrew its full-year 2025 guidance due to macroeconomic uncertainty and anticipated declines in revenue and comparable sales [1][2]. Financial Performance - The company expects first-quarter revenue of $1.1 billion, representing a 5% decline from the prior year [1]. - Comparable sales are projected to decrease by approximately 3%, with the American Eagle brand down 2% and the Aerie brand down 4% [1]. - An operating loss of around $85 million is anticipated, or $68 million on an adjusted basis [1]. Market Reaction - Following the announcement, American Eagle shares fell by 4.8%, trading at $12.11 [2]. - Analysts have adjusted their price targets for American Eagle, with BMO Capital lowering it from $15 to $11 and JP Morgan cutting it from $10 to $9 [2][7].
These Analysts Slash Their Forecasts On American Eagle Outfitters