A customer enters an American Eagle store in Miami, Florida on April 4, 2025. American Eagle on Tuesday said it is writing off $75 million in spring and summer merchandise and withdrawing its full-year guidance as it contends with slow sales, steep discounting and an uncertain economy.

First Quarter Expectations and Sales Performance

The apparel retailer said it expects revenue in the first quarter, which ended in early May, to be around $1.1 billion, a decline of about 5% compared to the prior-year period. American Eagle anticipates comparable sales will drop 3%, led by an expected 4% decline at intimates brand Aerie. American Eagle previously expected first-quarter sales to be down by a mid-single-digit percentage and anticipated full-year sales would drop by a low single-digit percentage.

Impact on Shares and Financial Loss

Shares plunged more than 17% in extended trading. When it reported fiscal fourth-quarter results in March, American Eagle warned that the first quarter was off to a “slower than expected” start, due to weak demand and cold weather. Conditions evidently worsened as the quarter progressed, and the retailer turned to steep discounts to move inventory.

Operating Loss and Restructuring

As a result, American Eagle is expecting to see an operating loss of around $85 million and an adjusted operating loss, which cuts out one-time charges related to its restructuring, of about $68 million for the quarter. That loss reflects “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise, the company said.

CEO Statement and Future Plans

“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein. “We have entered the second quarter in a better position, with inventory more aligned to sales trends,” he said. “Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.”

Withdrawal of Fiscal Guidance

The company added it is withdrawing its fiscal 2025 guidance “due to macro uncertainty and as management reviews forward plans in the context of first quarter results.” It is unclear if recent tariff policy changes had an effect on American Eagle. Some companies bought inventory earlier than usual to plan for higher duties, but American Eagle repeatedly said in March that it was in a solid inventory position and was able to go after trends as customer preferences shifted.

Conclusion

American Eagle’s financial struggles in the first quarter have led to a significant write-off of inventory and a withdrawal of its full-year guidance. The company’s CEO has expressed disappointment with the execution in the first quarter and has announced plans to strengthen product performance and improve buying principles. The future of American Eagle remains uncertain, and the company will need to work hard to regain its footing in the competitive apparel market.

FAQs

Q: What is the expected revenue for American Eagle in the first quarter?
A: The expected revenue for American Eagle in the first quarter is around $1.1 billion, a decline of about 5% compared to the prior-year period.
Q: What is the reason for the operating loss in the first quarter?
A: The operating loss in the first quarter is due to “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise.
Q: Is American Eagle withdrawing its fiscal 2025 guidance?
A: Yes, American Eagle is withdrawing its fiscal 2025 guidance due to macro uncertainty and as management reviews forward plans in the context of first quarter results.
Q: What is the impact of recent tariff policy changes on American Eagle?
A: It is unclear if recent tariff policy changes had an effect on American Eagle, as the company had previously stated that it was in a solid inventory position and was able to go after trends as customer preferences shifted.

Introduction to YouTube’s NFL Streaming

Patrick Mahomes #15 of the Kansas City Chiefs throws a pass in the first quarter against the Philadelphia Eagles during Super Bowl LIX at Caesars Superdome on February 09, 2025 in New Orleans, Louisiana.

YouTube to Stream NFL Game for Free

YouTube will stream the NFL’s week one game on Sept. 5 for free — the first time the dominant streaming platform has ever broadcast a live NFL game in its entirety.
The game, which will be between the Kansas City Chiefs and the Los Angeles Chargers, will take place in São Paulo, Brazil.

Statement from YouTube Chief Business Officer

“Last year, people spent over 350 million hours watching official NFL content on YouTube, so it’s both fitting and thrilling to continue to build our relationship with our partners at the NFL,” YouTube Chief Business Officer Mary Ellen Coe said in a statement. “Streaming the Friday night game to fans for free around the world will mark YouTube’s first time as a live NFL broadcaster – and we’ll do it in a way that only YouTube can, with an interactive viewing experience and creators right at the center of the experience.”

Game Availability

The game will be available to all YouTube and YouTube TV users globally, except in Canada and certain other countries, and locally on broadcast television in the media markets of the participating teams, YouTube said in a statement.
YouTube is the most-watched streaming platform in the U.S., consisting of 12% of all viewership for March, according to Nielsen.

Existing Deal with YouTube TV

The NFL has an existing deal with YouTube TV for Sunday Ticket, the league’s out-of-market package of games. Those games require a subscription — either $480 per year without YouTube TV or $378 per year for YouTube TV subscribers. YouTube TV is a collection of linear TV networks that approximates a standard cable bundle.
The full 2025 NFL schedule will be released at 8 p.m. ET Wednesday.

Conclusion

YouTube’s decision to stream the NFL game for free marks a significant milestone in the platform’s relationship with the NFL. With its massive user base and interactive viewing experience, YouTube is well-positioned to provide a unique and engaging experience for football fans around the world.

FAQs

Q: Which teams will be playing in the game streamed by YouTube?

A: The game will be between the Kansas City Chiefs and the Los Angeles Chargers.

Q: Where will the game take place?

A: The game will take place in São Paulo, Brazil.

Q: Will the game be available for free to all YouTube users?

A: Yes, the game will be available to all YouTube and YouTube TV users globally, except in Canada and certain other countries.

Q: What is the existing deal between the NFL and YouTube TV?

A: The NFL has an existing deal with YouTube TV for Sunday Ticket, the league’s out-of-market package of games, which requires a subscription.

Q: When will the full 2025 NFL schedule be released?

A: The full 2025 NFL schedule will be released at 8 p.m. ET Wednesday.

Employee rights and policies are crucial in ensuring a fair and safe work environment. The Fair Labor Standards Act (FLSA) is a federal law that sets standards for employment practices, including minimum wage, overtime pay, and working hours. In this article, we will delve into the details of the FLSA and what it means for employees and employers.

History of the FLSA

The FLSA was enacted in 1938, during the Great Depression, to protect workers from exploitation and ensure fair labor practices. The law has undergone several amendments since its inception, with significant changes in 1961, 1966, and 2007. The FLSA is administered by the U.S. Department of Labor’s Wage and Hour Division.

Purpose of the FLSA

The primary purpose of the FLSA is to establish a minimum standard for employment practices, including minimum wage, overtime pay, and working hours. The law aims to protect employees from exploitation and ensure that they are fairly compensated for their work. The FLSA also prohibits child labor, sets standards for record-keeping, and provides for enforcement and penalties for non-compliance.

Key Provisions of the FLSA

The FLSA has several key provisions that employers must comply with. These include:

Minimum Wage

The FLSA sets a minimum wage for most employees, which is currently $7.25 per hour. Employers must pay employees at least this minimum wage for all hours worked.

Overtime Pay

The FLSA requires employers to pay employees overtime pay for hours worked beyond 40 hours in a workweek. Overtime pay is calculated at one and a half times the employee’s regular rate of pay.

Working Hours

The FLSA sets standards for working hours, including the maximum number of hours an employee can work in a day and week. Employers must also provide employees with regular breaks and time off for meals and rest.

Child Labor

The FLSA prohibits child labor, with certain exceptions for minors who are allowed to work in non-hazardous occupations. Employers must comply with strict guidelines for employing minors, including restrictions on hours worked and types of jobs performed.

Who is Covered Under the FLSA?

The FLSA applies to most employees, including:

Full-Time and Part-Time Employees

Both full-time and part-time employees are covered under the FLSA, as long as they are engaged in interstate commerce or work for an employer who is engaged in interstate commerce.

Exempt and Non-Exempt Employees

The FLSA distinguishes between exempt and non-exempt employees. Exempt employees, such as executives, managers, and professionals, are not entitled to overtime pay. Non-exempt employees, on the other hand, are entitled to overtime pay and other protections under the FLSA.

Independent Contractors

Independent contractors are not considered employees under the FLSA and are not entitled to its protections. However, employers must ensure that independent contractors are properly classified as such and not misclassified as employees.

Enforcement and Penalties

The FLSA is enforced by the U.S. Department of Labor’s Wage and Hour Division. Employers who fail to comply with the FLSA may face penalties, including:

Back Pay

Employers may be required to pay back pay to employees who were underpaid or denied overtime pay.

Penalties and Fines

Employers may face penalties and fines for non-compliance, including civil penalties and fines of up to $10,000 for willful violations.

Class Action Lawsuits

Employees may also bring class action lawsuits against employers for FLSA violations, which can result in significant damages and penalties.

Real-Life Examples

Several high-profile cases have highlighted the importance of FLSA compliance. For example, in 2019, a federal court ruled that Walmart must pay $65 million in back pay to employees who were denied overtime pay. Similarly, in 2020, a California court ordered Uber to pay $20 million to settle a lawsuit alleging FLSA violations.

Global Trends and Politics

The FLSA has implications for global business and politics. With the rise of the gig economy and remote work, there is increasing debate about the classification of workers and the application of labor laws. The FLSA has also been influenced by international labor standards, such as the International Labor Organization’s (ILO) Convention on Minimum Wage Fixing.

Conclusion

In conclusion, the FLSA is a critical law that protects employee rights and ensures fair labor practices. Employers must comply with the FLSA’s provisions, including minimum wage, overtime pay, and working hours. Employees must also be aware of their rights under the FLSA and report any violations to the authorities. By understanding the FLSA, employers and employees can work together to create a fair and safe work environment.

Frequently Asked Questions (FAQs)

Q: Who is covered under the FLSA?
A: Most employees, including full-time and part-time employees, are covered under the FLSA.

Q: What is the minimum wage under the FLSA?
A: The minimum wage is currently $7.25 per hour.

Q: How is overtime pay calculated?
A: Overtime pay is calculated at one and a half times the employee’s regular rate of pay.

Q: Can employers require employees to work more than 40 hours in a week?
A: Yes, but employers must pay overtime pay for hours worked beyond 40 hours in a workweek.

Q: Are independent contractors entitled to FLSA protections?
A: No, independent contractors are not considered employees under the FLSA and are not entitled to its protections.

Q: What are the penalties for FLSA non-compliance?
A: Employers may face penalties, including back pay, penalties and fines, and class action lawsuits.