American Eagle Outfitters on Tuesday withdrew its annual forecasts as a consequence of macroeconomic uncertainty and stated it took a roughly $75 million stock cost within the first quarter associated to the write-down of its spring and summer time merchandise.
Shares of the attire maker slumped 10 p.c in prolonged commerce.
“We’re clearly dissatisfied with our execution within the first quarter. Merchandising methods didn’t drive the outcomes we anticipated, resulting in increased promotions and extra stock,” CEO Jay Schottenstein stated.
American Eagle stated it was “actively evaluating its ahead plans.”
Its adjusted working loss for the primary quarter included increased than deliberate promotions in addition to a restructuring cost of about $17 million associated to closing two fulfilment centres as a part of its provide chain community optimisation undertaking.
By Juveria Tabassum; Edited by Leroy Leo
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