American Eagle Stock Drops After Apparel Retailer Pulls Outlook

Shares of apparel retailer American Eagle Outfitters (AEO) dropped in extended trading Tuesday after the company pulled its 2025 outlook, saying its first-quarter results were “clearly” disappointing.

American Eagle’s shares, which rose more than 5% in Tuesday’s regular session, were recently off 15% in late trading, pointing toward prices just a bit above year-to-date lows. The company, in an afternoon press release, said first-quarter revenue was expected to fall about 5% year-over-year, with comparable-store sales off about 3%.

In March, it told investors to expect a “mid-single digit” decline in first-quarter revenue, along with a “low-single digit” dropoff for the year. Executives at the time said the quarter was off to a slower-than-expected start, but anticipated trends might improve heading into the spring.

American Eagle, which said it plans to report full results later this month, said those numbers would reflect “higher than planned promotional activity in the quarter” and a roughly $75 million charge associated with a write-down of spring and summer goods.

“We are clearly disappointed with our execution in the first quarter,” CEO Jay Schottenstein said in a statement. “Merchandising strategies did not drive the results we anticipated.”

American Eagle shares are down roughly 24% in 2025 through Tuesday’s close.