American Eagle Outfitters reported its first-quarter fiscal 2025 earnings with total net revenue of $1.1 billion, reflecting a 5% decline compared to the previous year. Comparable sales decreased by 3%, with the Aerie brand experiencing a 4% drop and American Eagle brand sales down 2%. The company posted a GAAP operating loss of $85 million and a non-GAAP operating loss of $68 million. Gross margin contracted sharply to 29.6% from 40.6% in the prior year. Diluted loss per share was $0.36 on a GAAP basis and $0.29 on an adjusted basis, based on an average of 180 million diluted shares outstanding. Inventory levels decreased by 5% to $645 million. American Eagle missed earnings expectations by $0.04 per share and reported revenue in line with estimates. The company issued a cautious outlook for the second quarter, guiding revenue below consensus estimates.