Thu, Jun 5, 8:36 PM (7 days ago)
**American Eagle Outfitters, Inc. (AEO) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1,089.6 million (down 5% YoY) - **Net Loss:** $64.9 million (vs. $67.8 million profit in Q1 2024) - **EPS:** -$0.36 (vs. $0.34 in Q1 2024) - **Gross Margin:** 29.6% (down from 40.6% in Q1 2024) - **Operating Loss:** $85.2 million (vs. $77.8 million profit in Q1 2024) - **Cash & Cash Equivalents:** $87.9 million (down from $300.5 million in Q1 2024) **Key Metrics & Trends:** - **Comparable Sales:** Down 3% YoY - **Inventory Write-down:** $75 million for spring/summer merchandise - **Promotional Activity:** Higher than planned - **Capital Expenditures:** $61.6 million (up 70% YoY) - **Share Repurchases:** $200 million accelerated share repurchase agreement - **Dividends:** $0.125 per share declared and paid **Segment Performance:** - **American Eagle:** Revenue down 4% YoY, comparable sales down 2% - **Aerie:** Revenue down 3% YoY, comparable sales down 4% **Future Operations & Uncertainties:** - **Store Openings/Closures:** Plans to open 5-15 American Eagle stores and 25-40 Aerie/OFFLINE stores; potential closure of 15-20 American Eagle stores - **Remodels:** 90-100 American Eagle/Aerie stores planned for remodel - **Macroeconomic Challenges:** Inflationary pressures and consumer spending behavior negatively impacted results - **International Operations:** 363 licensed retail stores and concessions in ~30 countries **Liquidity & Capital Resources:** - **Revolving Credit Facility:** $700 million, $110 million borrowed as of Q1 2025 - **Cash Flow:** Negative operating cash flow of $54.7 million (vs. -$38.1 million in Q1 2024) - **Capital Expenditures:** $275 million expected for Fiscal 2025 **Risks & Uncertainties:** - Global economic conditions, consumer spending, competition, weather, import tariffs, and other factors may impact future performance - Inventory management, promotional activity, and store performance are key areas of focus for improvement