May 29 (Reuters) - American Eagle Outfitters ( AEO )

forecast second-quarter revenue below estimates after reporting

a wider-than-expected quarterly loss on Thursday, due to rising

input costs and sluggish demand.

Shares of the company, which withdrew its fiscal 2025

forecasts earlier this month amid tariff uncertainty, fell about

8% after the bell.

Consumers grappling with financial constraints are avoiding

non-essential purchases, including apparel and accessories,

which in turn has hurt demand for clothing brands such as

American Eagle Outfitters ( AEO ).

Comparable sales in the company's American Eagle brand

declined 2%, while those for its Aerie brand dropped 4%,

compared to a year ago.

Meanwhile, fears of a surge in product prices, sparked by

U.S. President Trump's unpredictable tariff shifts, have rattled

businesses and consumers worldwide.

Peer Abercrombie & Fitch, however, reported an upbeat

quarter, driven by robust demand for its Hollister brand among

younger shoppers.

American Eagle Outfitters ( AEO ) now expects second-quarter revenue

to decline by 5%, compared with analysts' estimates of a 4.04%

drop, according to data compiled by LSEG.

Total inventory as of the quarter ended May 3 fell 5% to

$645 million, with unit numbers also down 5%.

The owner of the Aerie brand, which took a $75 million

inventory charge on its spring and summer collection, saw

further margin pressure from increased in-season discounts and

advertising expenses.

Its quarterly gross margin dropped to 29.6% from 40.6% a

year ago.

The company reported a quarterly adjusted loss of 29 cents

per share, versus analysts' estimates of a loss of 22 cents per

share.

Its quarterly net revenue declined 4.7% to $1.09

billion, from a year ago. Analysts estimated a drop of 4.34% to

$1.09 billion.