AEO posts disappointing Q1 results, and warns of continued pressure in Q2 as tariffs, weak demand and margin erosion are likely to weigh on performance.

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,

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.