American Eagle sees Q1 SSS down 3%

As part of its Q1 pre-announcement, the company also stated: “Comparable sales are expected to be down approximately 3%, with American Eagle (AEO) down 2% and Aerie down 4%. Management expects a GAAP operating loss of approximately $85 million and an adjusted operating loss of approximately $68 million for the quarter. The adjusted operating loss reflects higher than planned promotional activity in the quarter and an inventory charge of roughly $75 million related to a write-down of spring and summer merchandise. The GAAP operating loss includes an additional asset impairment and restructuring charge of approximately $17 million, primarily related to closing two fulfillment centers as part of its supply chain network optimization project.”