American Eagle Outfitters Q1 Revenue Down 4.7% YoY, Urban Outfitters Sees 10.7% YoY Growth

American Eagle Outfitters reported Q1 revenues of $1.09 billion, down 4.7% YoY, missing analysts' EBITDA and EPS estimates. Despite this, the stock is up 8.5% since reporting. Urban Outfitters, on the other hand, reported revenues of $1.33 billion, up 10.7% YoY, beating analysts' estimates and achieving the fastest revenue growth among its peers, with the stock up 30.7% since reporting.

American Eagle Outfitters (AEO) reported its first-quarter (Q1) 2025 financial results, showcasing a revenue of $1.09 billion, down 4.7% year-over-year (YoY) compared to the same period last year. This performance missed analysts' expectations, with the company's earnings per share (EPS) and EBITDA estimates also falling short. Despite these disappointing figures, AEO's stock has risen by 8.5% since the report was released.

AEO's Q1 revenue of $1.09 billion represents a 4.7% decline from the previous year's $1.14 billion. The company's EPS was projected to be $0.2, but the actual result was not disclosed. The company's full-year Zacks Consensus Estimates for earnings per share (EPS) and revenue are $0.83 and $5.19 billion, respectively, indicating significant year-over-year declines of 52.3% and 2.57% [1].

In comparison, Urban Outfitters (URBN) reported Q1 2025 revenues of $1.33 billion, up 10.7% YoY, significantly outperforming its peers. Urban Outfitters' stock has surged by 30.7% since the announcement, demonstrating the contrasting performance within the retail sector [2].

Analysts have expressed mixed opinions on AEO's stock. The company's stock is currently rated as a "Hold" by 11 analysts, with a 12-month price target of $15.4, representing a 28.01% increase from the latest price [1]. Despite the recent stock gains, AEO's Zacks Rank is currently at #5 (Strong Sell), indicating a negative outlook based on recent estimate revisions [1].

The retail sector has been facing increased tariff exposure due to recent White House decisions, which could impact the profitability of companies like AEO and URBN. However, both companies have shown resilience in the face of these challenges, with AEO's strategic partnerships and URBN's strong brand recognition contributing to their respective performances.

American Eagle Outfitters' Q1 results highlight the challenges faced by the retail sector, particularly in the face of economic uncertainty. While the company's stock has shown resilience, the overall financial performance indicates a need for strategic adjustments and a focus on cost management. As the retail sector continues to evolve, investors will closely monitor the earnings performance of both AEO and URBN to gauge their future prospects.

References:
[1] https://stockanalysis.com/stocks/aeo/
[2] https://www.nasdaq.com/articles/american-eagle-outfitters-aeo-beats-stock-market-upswing-what-investors-need-know-0