Peer Abercrombie & Fitch, however, reported an upbeat quarter, driven by robust demand for its Hollister brand among younger shoppers. American Eagle Outfitters now expects second-quarter revenue to decline by 5%, compared with analysts' estimates of a 4.04% drop, according to data compiled by LSEG.

Key Takeaways American Eagle Outfitters stock sank Friday as the retailer reported a larger-than-expected first-quarter loss.The retailer expects sales to continue declining in the second quarter.Earlier this month,

American Eagle Outfitters, Inc. AEO reported drab first-quarter fiscal 2025 results, wherein the top and bottom lines missed the Zacks Consensus Estimate and declined year over year. AEO posted a loss of 29 cents per share in the fiscal first quarter.