American Eagle Outfitters Sees $300 Million Trading Surge, Ranks 353rd Despite 6.45% Stock Decline

On May 14, 2025, American Eagle Outfitters (AEO) experienced a significant surge in trading volume, with a turnover of $300 million, marking a 155.79% increase from the previous day. This surge positioned AEO as the 353rd most traded stock on the day. However, the stock price of American Eagle Outfitters declined by 6.45%.

American Eagle Outfitters has withdrawn its 2025 outlook due to macroeconomic uncertainty and the need to review forward plans in light of the first-quarter results. The company reported a revenue decline of approximately 5% compared to the same period last year, with comparable sales down by about 3%. The American Eagle brand saw a 2% decrease in comparable sales, while Aerie experienced a 4% decline.

The company expects a GAAP operating loss of approximately $85 million and an adjusted operating loss of approximately $68 million for the quarter. The adjusted operating loss reflects higher than planned promotional activity and an inventory charge of roughly $75 million related to a write-down of spring and summer merchandise. Additionally, the GAAP operating loss includes an asset impairment and restructuring charge of approximately $17 million, primarily due to the closure of two fulfillment centers as part of its supply chain network optimization project.

American Eagle Outfitters has cited revenue decline, lower comparable sales, and macroeconomic uncertainty as reasons for withdrawing its 2025 guidance. The company's preliminary first-quarter results reflect an inventory write-down to better align with demand trends and asset impairment charges. The company is actively evaluating its forward plans and working to strengthen product performance while improving buying principles.