American Eagle Outfitters Stock Touches 52-Week Low After Mixed Q4 Earnings: Retail Sentiment Sours

Shares of American Eagle Outfitters Inc. (AEO) fell 5.5% in after-hours trading on Thursday to a one-year low after mixed fiscal fourth-quarter earnings, dragging down retail sentiment.

American Eagle Outfitters gave worse-than-expected guidance, becoming the latest clothing company to warn about softening demand amid pressures around China tariffs.

Its comparable sales increased by 3%, following an 8% comp growth it reported last year.

Earnings per share (EPS) stood at $0.53, beating estimates of $0.50. The company attributed strong operating profit growth to positive brand and channel momentum.

Revenue declined 4% year-over-year to $1.6 billion, but it was roughly in-line with estimates. This included about $85 million of adverse impact from one less selling week and the retail calendar shift.

“Entering 2025, the first quarter is off to a slower start than expected, reflecting less robust demand and colder weather. While we anticipate improvement as the Spring season gets underway, we are also taking proactive steps to strengthen the top-line, manage inventory and reduce expenses,” said AEO’s executive chairman and CEO.

“As we navigate through an uncertain consumer and operating landscape, we will also remain focused on our long-term strategic priorities,” he added.

However, its outlook for the first quarter and fiscal 2025 warned of “near-term headwinds in the consumer and macroeconomic operating environment.”

The Pennsylvania-based clothing company expects revenue declines in the low single digits in fiscal 2025 and mid-single digits in Q1.

Despite the Q4 earnings beat, sentiment on Stocktwits ended Thursday in the ‘extremely bearish’ zone, with message volume ‘extremely high.’ Many commenters raised worries about the company’s guidance.

AEO sentiment meter and message volume on March 12 as of 11:50 pm ET

One bearish watcher was worried about the recession badly impacting companies like American Eagle.

Another user credited the pessimism to the company’s poor guidance.

Earlier this week, American Eagle also authorized an additional 50 million shares for repurchase under its existing share authorization, increasing the total shares available for repurchase to 68.5 million through Feb. 3, 2029.

AEO stock is down 31% year-to-date.

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