Global Trends and Politics
American Eagle (AEO) Earnings Q4 2024

American Eagle Warns of Slower Start to Year, Shares Fall 5%
Company Sees Less Robust Demand and Colder Weather
American Eagle, the popular retailer, warned investors on Wednesday that consumers are pulling back on spending, leading to a "slower start" to the year than expected. The company’s CEO, Jay Schottenstein, stated that the first quarter is off to a slower start, reflecting less robust demand and colder weather.
Weak Guidance and Cautious Commentary
The downbeat commentary, which came with weak guidance for the current quarter and year ahead, is the latest warning sign that the consumer might be slowing down as shoppers contend with persistent inflation and concerns around tariffs. Over the past couple of weeks, a string of other retailers, including both strong companies and ones that tend to struggle, have issued weak guidance and cautious commentary about the current macroeconomic conditions and warned 2025 might be a weaker than expected year for sales.
Holiday Results and Comparable Sales
Beyond its outlook, American Eagle issued mixed holiday results and comparable sales that beat expectations. Here’s how the apparel company did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
- Earnings per share: 54 cents vs. 50 cents expected
- Revenue: $1.60 billion vs. $1.60 billion expected
Quarterly Results
The company’s reported net income for the three-month period that ended Feb. 1 was $104 million, or 54 cents per share, compared with $6.31 million, or 3 cents per share, a year earlier. Sales dropped to $1.60 billion, down slightly from $1.68 billion a year earlier. Comparable sales, which don’t include the effect of one less selling week, were up 3% during the quarter, ahead of expectations of up 2.1%, according to StreetAccount.
Outlook and Challenges
For the current quarter, American Eagle is expecting to see a mid-single-digit decline in sales, while analysts expected revenue to increase 1.3%. For the full year, it is expecting sales to decline by a low single digit, compared with expectations of 3% growth, according to LSEG. The company is also expecting Aerie sales to be positive for the year but that growth will be offset by a steeper decline at the American Eagle banner. Tariffs are also expected to weigh on results, with a $5 million to $10 million hit from the new duties in fiscal 2025.
Strategic Priorities
As the company navigates through an uncertain consumer and operating landscape, it will remain focused on its long-term strategic priorities, including strengthening its top line, managing inventory, and reducing expenses. The company has made significant strides in improving profitability over the past year but has seen slower sales growth.
Conclusion
American Eagle’s warning of a slower start to the year is a sign that the consumer might be slowing down due to persistent inflation and concerns around tariffs. The company’s mixed holiday results and comparable sales that beat expectations are a positive sign, but its weak guidance and cautious commentary are a concern. As the company looks to the future, it will need to continue to focus on its long-term strategic priorities to stay competitive in a challenging retail landscape.
Frequently Asked Questions
Q: What did American Eagle warn investors about?
A: American Eagle warned investors that consumers are pulling back on spending, leading to a "slower start" to the year than expected.
Q: What is the company’s outlook for the current quarter and year ahead?
A: American Eagle expects to see a mid-single-digit decline in sales for the current quarter and a low single-digit decline in sales for the full year, compared with expectations of 1.3% growth.
Q: What are the company’s strategic priorities?
A: The company will remain focused on strengthening its top line, managing inventory, and reducing expenses as it navigates through an uncertain consumer and operating landscape.
Global Trends and Politics
The Future of Work: How Labor Law Reforms Can Help Ensure a Sustainable, Inclusive, and Prosperous Economy

As the world grapples with the challenges of the 21st century, the future of work is rapidly changing. With the rise of the gig economy, automation, and artificial intelligence, the traditional notion of employment is being redefined. In this context, labor law reforms are essential to ensure a sustainable, inclusive, and prosperous economy. In this article, we will explore how these reforms can help shape the future of work and create a better tomorrow.
The Current State of Labor Law Reforms
The current labor landscape is marked by a shrinking middle class, growing income inequality, and an aging workforce. The rise of the gig economy has created new opportunities, but it has also led to a lack of job security, benefits, and social protection for millions of workers. The future of work requires a fundamental shift in the way we think about labor and employment.
Key Labor Law Reforms
To address the challenges of the future of work, several labor law reforms are necessary. These reforms include:
### Ensuring Fair and Competitive Wages
Fair wages are essential for a sustainable and prosperous economy. Labor law reforms should ensure that workers are paid a living wage, allowing them to afford a decent standard of living.
### Strengthening Social Protection
Social protection is critical for workers, particularly in the gig economy. Labor law reforms should ensure that workers have access to basic social protections, such as healthcare, pensions, and unemployment insurance.
### Promoting Worker Flexibility and Autonomy
The future of work requires flexibility and autonomy. Labor law reforms should promote flexibility in work arrangements, allowing workers to balance their personal and professional lives.
### Fostering Inclusive and Diverse Workplaces
Inclusive and diverse workplaces are essential for a prosperous economy. Labor law reforms should promote diversity, equity, and inclusion in the workplace, ensuring that all workers have equal opportunities and are treated with respect and dignity.
### Encouraging Lifelong Learning and Up-skilling
The future of work requires continuous learning and up-skilling. Labor law reforms should encourage workers to develop new skills, providing training and education programs to help them adapt to changing job markets.
### Reducing Inequalities and Promoting Fair Competition
Labor law reforms should reduce inequalities and promote fair competition. This can be achieved by regulating monopolies, promoting fair labor standards, and ensuring that all workers have equal access to opportunities.
Examples of Successful Labor Law Reforms
Several countries have implemented successful labor law reforms, achieving positive results. For example:
### Germany’s Apprenticeship System
Germany’s apprenticeship system has been successful in providing young people with practical training and skills, reducing youth unemployment and promoting vocational education.
### Denmark’s Flexicurity Model
Denmark’s flexicurity model has balanced flexibility and security, providing workers with a balance between job security and flexibility, while also promoting labor market flexibility and competitiveness.
### Sweden’s Collective Bargaining System
Sweden’s collective bargaining system has promoted fair labor standards, ensuring that workers are paid a living wage and have access to social protections, while also promoting social dialogue and cooperation between employers and employees.
Conclusion
The future of work requires a fundamental shift in the way we think about labor and employment. Labor law reforms are essential to ensure a sustainable, inclusive, and prosperous economy. By ensuring fair and competitive wages, strengthening social protection, promoting worker flexibility and autonomy, fostering inclusive and diverse workplaces, encouraging lifelong learning and up-skilling, and reducing inequalities and promoting fair competition, we can create a better tomorrow for workers and the economy as a whole.
FAQs
### Q: What are the key labor law reforms needed for the future of work?
A: The key labor law reforms needed for the future of work include ensuring fair and competitive wages, strengthening social protection, promoting worker flexibility and autonomy, fostering inclusive and diverse workplaces, encouraging lifelong learning and up-skilling, and reducing inequalities and promoting fair competition.
### Q: What are some examples of successful labor law reforms?
A: Germany’s apprenticeship system, Denmark’s flexicurity model, and Sweden’s collective bargaining system are examples of successful labor law reforms.
### Q: Why is lifelong learning and up-skilling important for the future of work?
A: Lifelong learning and up-skilling are essential for the future of work, as it allows workers to adapt to changing job markets and industries, ensuring they remain relevant and competitive in the job market.
### Q: How can labor law reforms reduce inequalities and promote fair competition?
A: Labor law reforms can reduce inequalities and promote fair competition by regulating monopolies, promoting fair labor standards, and ensuring that all workers have equal access to opportunities.
### Q: What is the role of social protection in the future of work?
A: Social protection is critical for workers, particularly in the gig economy. Labor law reforms should ensure that workers have access to basic social protections, such as healthcare, pensions, and unemployment insurance.
Global Trends and Politics
What Southwest Airlines is Changing

Southwest Airlines to Charge for Checked Luggage, Ends "Two Bags Fly Free" Policy
Southwest Airlines announced on Tuesday that it will start charging customers to check their luggage, marking a significant shift away from its long-standing "two bags fly free" policy. The airline will begin charging for checked bags on tickets purchased on or after May 28.
The move is part of a broader plan by Southwest to ditch its customer perks and policies in an effort to increase revenue. The airline has been under pressure from activist hedge fund Elliott Investment Management to raise revenue and improve returns.
Who Will Pay for Bags?
Travelers who purchase any ticket except for Southwest’s top-level Business Select fare will have to pay fees to check bags. Customers who buy a Business Select ticket will still be able to check two bags for free. Top-tier A-List Preferred frequent flyer program members will also get two checked bags for free, as will those with a Southwest credit card.
How Much Will it Cost to Check a Bag?
Southwest didn’t disclose the exact cost to check a bag, but fees start at $35 per bag on competitors Delta, United, and American Airlines.
When Do the New Policies Take Effect?
The new checked baggage fees will go into effect for tickets purchased on or after May 28.
Can I Still Bring a Carry-On Bag?
Carry-on bag policies haven’t changed, even for basic economy tickets. All tickets will include a free carry-on bag, even for the new basic economy tickets.
But Won’t Everyone Else Bring a Carry-On Bag, Too?
Southwest has warned that customers will "undoubtedly carry on more luggage than before" and is taking steps to keep things moving. The airline will get mobile bag-tag printers and design new carry-on size guides to help customers check if their luggage fits as a carry-on.
Will There Be Longer Airport Lines?
Possibly. Southwest said it may redistribute staff to handle changing customer needs with the new bag rules and will equip staff with mobile printers. Airport lobbies will also see changes, with staff possibly handling longer transaction and queue times.
Why is This Happening?
Southwest has been under increasing pressure to raise revenue and improve returns after activist hedge fund Elliott Investment Management took a stake in the airline last year. Southwest executives have long told investors and customers that its "two bags fly free" policy is sacrosanct, setting it apart from competitors.
What Else is Happening?
Southwest is launching a basic economy fare that is not refundable and doesn’t allow for changes. It won’t allow for same-day standby tickets. Flight credits for those "basic" tickets, if unused, will expire in six months, while credits for other flights will expire in 12 months.
Conclusion
Southwest Airlines’ decision to charge for checked luggage marks a significant shift away from its long-standing "two bags fly free" policy. The airline is trying to increase revenue and improve returns, but the move may lead to longer airport lines and changed customer behavior. As the airline continues to adapt to a competitive market, it remains to be seen how its new policies will impact customer satisfaction and loyalty.
Frequently Asked Questions
Q: When do the new checked baggage fees go into effect?
A: The new checked baggage fees will go into effect for tickets purchased on or after May 28.
Q: Who will have to pay for checked bags?
A: Travelers who purchase any ticket except for Southwest’s top-level Business Select fare will have to pay fees to check bags.
Q: How much will it cost to check a bag?
A: Southwest didn’t disclose the exact cost to check a bag, but fees start at $35 per bag on competitors Delta, United, and American Airlines.
Q: Can I still bring a carry-on bag?
A: Yes, carry-on bag policies haven’t changed, even for basic economy tickets. All tickets will include a free carry-on bag, even for the new basic economy tickets.
Global Trends and Politics
New York Employers: What’s Changing with the New Paid Family Leave Law

Introduction
Are you a New York employer struggling to balance the needs of your business with the needs of your employees? The new paid family leave law in New York is set to revolutionize the way employers support their employees’ family lives. As of January 1, 2020, New York State has implemented a comprehensive paid family leave law, which provides eligible employees with up to 12 weeks of paid leave to care for a loved one.
The New Law: What’s Changing?
The new law, known as the New York Paid Family Leave (NYPFL) Program, is a significant expansion of the existing Family and Medical Leave Act (FMLA). Under the new law, eligible employees are entitled to take up to 12 weeks of paid family leave to care for a seriously ill family member, a new child, or to bond with a new child.
Key Changes Under the New Law
Here are the key changes under the new law:
-
Eligibility
To be eligible for NYPFL, an employee must have worked for at least 26 weeks in the 52 weeks preceding the start of leave. The employee must also have earned at least 7 times the weekly benefit amount in the 52 weeks preceding the start of leave.
-
Benefits
Benefits under the NYPFL Program are equal to 67% of an employee’s average weekly wage, up to a maximum of $1,000 per week.
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Job Protection
Employees taking leave under NYPFL are entitled to job protection, meaning they must be restored to their previous job or a comparable position with the same pay, benefits, and other employment terms.
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Paid Leave Types
There are three types of paid leave under NYPFL: (1) family care, which allows employees to care for a seriously ill family member; (2) parental care, which allows employees to bond with a new child; and (3) family bereavement, which allows employees to care for a deceased family member.
How Does the New Law Affect Employers?
While the new law is designed to benefit employees, it also presents challenges for employers. Here are some key considerations for employers:
Key Challenges for Employers
-
Increased Absence and Turnover
With more employees taking paid leave, employers may see an increase in absenteeism and turnover, which can impact productivity and morale.
-
Staffing and Scheduling
With employees out on leave, employers may need to adjust staffing and scheduling to ensure business continuity.
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Compliance and Record-Keeping
Employers must comply with the new law’s requirements, including maintaining accurate records of employee leave and providing notice to employees.
Best Practices for Employers
To minimize the impact of the new law on your business, consider the following best practices:
Best Practices for Employers
-
Develop a Leave Management Policy
Create a comprehensive leave management policy that outlines the process for requesting and approving leave, as well as maintaining accurate records.
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Communicate with Employees
Ensure that employees are informed about the new law and the benefits it provides, as well as the process for requesting and approving leave.
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Plan Ahead
Anticipate the potential impact of the new law on your business and develop strategies to minimize the disruption.
Conclusion
The new paid family leave law in New York is a significant change for employers, but it’s also an opportunity to support the well-being of your employees and their families. By understanding the key changes under the new law and implementing best practices, you can minimize the impact on your business while ensuring that your employees receive the support they need.
FAQs
Q: What is the effective date of the new paid family leave law in New York?
A: January 1, 2020
Q: How many weeks of paid family leave is an eligible employee entitled to under the new law?
A: Up to 12 weeks
Q: What is the maximum weekly benefit amount under the new law?
A: $1,000 per week
Q: Do employees have job protection under the new law?
A: Yes, employees taking leave under NYPFL are entitled to job protection, meaning they must be restored to their previous job or a comparable position with the same pay, benefits, and other employment terms.
Q: What is the process for requesting and approving leave under the new law?
A: Employees must provide 30 days’ notice to their employer, unless the employer waives this requirement. Employers must approve or deny leave requests in writing.
Q: How does an employer know whether an employee is eligible for paid family leave?
A: Employers can use the NYPFL online calculator to determine an employee’s eligibility.
Additional Resources
For more information on the new paid family leave law in New York, visit the New York State Department of Labor’s website at www.labor.ny.gov.
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