American Eagle Halts Annual Forecasts Amid Increased Market Uncertainty

Published 3 hours agoAEO

American Eagle Halts Annual Forecasts Amid Increased Market Uncertainty

American Eagle Outfitters has announced it will be withdrawing its annual revenue and profit forecasts, citing ongoing macroeconomic uncertainties that have influenced its decision-making process. This announcement comes as the company navigates a challenging landscape, adjusting its expectations in the face of unpredictable market conditions.

In the first quarter, American Eagle reported a $75 million write-down due to excess inventory from spring and summer collections that underperformed in sales. Additionally, the company noted a $17 million restructuring charge related to shutting down two fulfillment centers as part of broader efforts to optimize its supply chain. Following these developments, Reuters reported that the company's shares fell by 10% in after-hours trading, indicating investor concern over these strategic shifts.

CEO Jay Schottenstein has addressed some of the operational challenges, recognizing that less effective merchandising strategies have led to increased promotional activity and inventory surpluses. The company is now reassessing its future strategies to better align with current market demands and improve its operational efficiency.

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