Matthew Mitchell, center, talks with customers as Sierra Phillips adjusts a denim display at the American Eagle/Aerie store at Easton Town Center in
Matthew Mitchell, center, talks with customers as Sierra Phillips adjusts a denim display at the American Eagle/Aerie store at Easton Town Center in Columbus, Ohio on May 15, 2020.
Andrew Spear | The Washington Post | Getty Images
American Eagle Outfitters posted a steeper-than-expected loss on Wednesday, as sales and store traffic plummeted following coronavirus-led store closures, sending shares down as much as 10.5%.
The retailer, which withdrew its annual forecast in April, has experienced a drop in demand for its jeans and popular Aerie brand apparel, which include intimates and athleisure.
The Aerie brand recorded a revenue decline of 2%, compared with a 28% rise a year ago. Revenue at the American Eagle label fell 45% during the quarter.
The company also suspended its second-quarter dividend and does not anticipate declaring a dividend for the rest of this year to preserve liquidity.
American Eagle also said its net loss stood at $257.2 million, or $1.54 per share, compared with a profit of $40.8 million, or 23 cents per share, a year earlier, mainly due to an impairment charge of about $156 million related to COVID-19-induced closures of 272…