American Eagle Outfitters Plunges 14.78% on Forecast Withdrawal

On May 14, 2025, American Eagle Outfitters experienced a significant drop of 14.78% in pre-market trading, reflecting a tumultuous start to the day for the retailer.

American Eagle Outfitters has withdrawn its annual forecasts due to macroeconomic uncertainty, a move that has sent shockwaves through the market. The company reported a $75 million inventory charge on its spring and summer collection, citing tariff uncertainty and sluggish shopping trends as key factors.

The retailer expects to report first-quarter revenue of $1.1 billion, a 5% decline year-over-year, further underscoring the challenges it faces in the current economic climate. This withdrawal of annual targets and the inventory write-down have contributed to a significant drop in the company's shares, with investors expressing concern over the retailer's ability to navigate the current economic headwinds.