American Eagle Outfitters Plunges 11.63% on Earnings Miss

On May 30, 2025, American Eagle Outfitters experienced a significant drop of 11.63% in pre-market trading, reflecting a challenging quarter for the retailer.

American Eagle Outfitters reported a quarterly loss of $0.29 per share, missing the consensus estimate of a loss of $0.25. This loss compares to earnings of $0.34 per share a year ago, marking a substantial decline in profitability. The company's revenue for the quarter ended April 2025 was $1.09 billion, missing the consensus estimate by 0.15% and down from $1.14 billion a year ago. This revenue miss, combined with a larger-than-expected loss, has raised concerns among investors about the company's financial health.

The company's earnings report highlighted several challenges, including weak margins, inventory writedowns, and declining sales. These factors contributed to the company's decision to withdraw its fiscal 2025 guidance, adding to the uncertainty surrounding its future performance. The company's non-GAAP loss of $0.29 per share was significantly below analysts' consensus estimates, marking a 32.6% miss. This disappointing performance has led to a decline in investor confidence, with shares falling over 7% in extended trading.

Looking ahead, the sustainability of American Eagle Outfitters' stock price will depend on management's commentary on the earnings call and future earnings expectations. The company's earnings outlook is mixed, with the current consensus EPS estimate at $0.25 on $1.24 billion in revenues for the coming quarter and $1.01 on $5.22 billion in revenues for the current fiscal year. Investors will be closely watching how these estimates change in the days ahead, as they could provide insights into the company's future performance.