AEO Stock Recent News

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.

PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters Inc. (NYSE: AEO) today announced that it has entered into an accelerated share repurchase agreement (ASR) with Bank of America, N.A. to repurchase $200 million of its common stock. This equates to approximately 18.1 million shares, at the closing price on March 14, 2025 and represents approximately 9.5% of the company's fully diluted outstanding stock. The company intends to complete the ASR in connection with its existing share repurchase.