American Eagle Outfitters Inc. reported a 5% decline in revenue for the first quarter of 2025, totaling $1.1 billion, with a 3% decrease in comparable sales and a 4% drop in Aerie comps. The company also announced a GAAP operating loss of $85 million and an adjusted operating loss of $68 million, driven by higher promotional activity, a $75 million write-down of spring and summer inventory, and restructuring costs from closing fulfillment centers. Following these disappointing preliminary results, which were worse than expected, American Eagle withdrew its financial guidance for 2025, citing macro uncertainty and tariff-related concerns. The company's shares experienced significant volatility, with a reported plunge of 17% in after-hours trading and a 13.1% drop in premarket trading. CEO Jay Schottenstein expressed disappointment with the first quarter's execution, attributing the poor performance to merchandising strategies that did not meet expectations. He noted that the company is entering the second quarter in a better position, with inventory more aligned with sales trends.