American Eagle faces challenges from new tariffs and a cautious outlook, which means more volatility for investors.
Recently, Zacks.com users have been paying close attention to American Eagle (AEO). This makes it worthwhile to examine what the stock has in store.
Downgrade American Eagle Outfitters to a hold due to weak macro climate, FX, tariff headwinds, and disappointing 1Q25 guidance impacting FY25 EBITDA expectations. 4Q24 results were solid, with revenue slightly above estimates, improved margins, and EPS beating consensus, but demand has turned soft. 1Q25 guidance shows declining sales and margins, indicating broader macro weakness affecting AEO, making my FY25 targets unachievable.
AEO's stock rises after posting an earnings beat. Yet, near-term challenges remain concerning.
Zacks.com users have recently been watching American Eagle (AEO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
American Eagle makes an accelerated share repurchase agreement to buy back $200 million of its common stock.
American Eagle Outfitters reported a solid Q4 but issued a grim outlook for Q1 and FY25, with significant margin pressures and declining revenue expected. Despite low valuation, AEO faces operational challenges and competitive pressures, underperforming compared to peers like Abercrombie & Fitch and Gap. Management guided for a severe gross margin decline in 1H 2025, impacting operating profits significantly, raising concerns about AEO's ability to compete.
American Eagle Outfitters Inc. (NYSE:AEO) shares moved higher after the retailer announced it has entered into a $200 million accelerated share repurchase agreement. The agreement with Bank of America will involve the repurchase of approximately 18.1 million shares, or about 9.5% of the company's fully diluted outstanding stock.
AIN, AEO and ASX have been added to the Zacks Rank #5 (Strong Sell) List on March 17, 2025.
Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of American Eagle Outfitters Inc AEO and lowered the price target from $18 to $12.
American Eagle Outfitters Inc. (NYSE:AEO) shares moved lower as it issued weak guidance for the first quarter of 2025, citing slower demand amid macroeconomic uncertainty and colder weather. The clothing retailer expects a mid-single digit decline in sales for Q1, compared to analyst estimates of a 1.3% increase.
American Eagle Outfitters, Inc. (NYSE:AEO ) Q4 2024 Earnings Conference Call March 12, 2025 4:30 PM ET Company Participants Judy Meehan - Senior Vice President, Corporate Communications and Investor Relations Jay Schottenstein - Executive Chairman and Chief Executive Officer Jen Foyle - President, Executive Creative Director, American Eagle and Aerie Mike Mathias - Chief Financial Officer Conference Call Participants Jay Sole - UBS Amanda Douglas - JPMorgan Janet Kloppenburg - JJK Research Adrienne Yih - Barclays Paul Lejuez - Citi Dana Telsey - Telsey Advisory Group Marni Shapiro - The Retail Tracker Rick Patel - Raymond James Simeon Siegel - BMO Capital Markets Alex Straton - Morgan Stanley Operator Greetings, and welcome to the American Eagle Outfitters Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.