U.S. Movers: Adobe, American Eagle Outfitters

Scott Peters
13 Mar, 2025
New York City

Adobe Inc. dropped 4% to $420.98 after the graphic design software developer reported results for the fiscal first quarter of 2025 ending in February.

Revenue increased to $5.71 billion from $5.18 billion, net income surged to $1.81 billion from $620 million, and diluted earnings per share rose to $4.14 from $1.36 a year ago.

The company repurchased approximately 7.0 million shares during the quarter.

“Adobe is well-positioned to capitalize on the acceleration of the creative economy driven by artificial intelligence, and we are reaffirming our fiscal 2025 financial targets,” said Shantanu Narayen, chair and CEO.

The company guided second quarter revenue to be between $5.77 billion and $5.82 billion, up from $5.31 billion a year ago, and earnings per share between $3.80 and $3.85, up from $3.49 in the same period in 2024.

For the full year, Adobe estimated revenue to be between $23.30 billion and $23.55 billion, up from $21.51 billion in 2024, and GAAP earnings per share between $15.80 and $16.10, compared to $12.36 a year ago.

American Eagle Outfitters Inc. dropped 5.1% to $10.86 after the specialty apparel retailer reported comparable sales growth in the fiscal fourth quarter of 2024.

Revenue declined to $1.60 billion from $1.68 billion, net income surged to $104.35 million from $6.32 million, and diluted earnings per share jumped to 54 cents from 3 cents a year ago.

Comparable sales advanced 3% in the quarter, with record Aerie comparable growth of 6% and American Eagle comparative growth of 1%.

The company guided for the first quarter of 2025 a revenue decline of “mid-single digits” and operating income to be between $20 million and $25 million, compared to $78 million in the same period last year.

For the full year, the company expects revenue to decline at “low single digits” and operating income to be between $360 million and $375 million, compared to $142 million in 2024.

The apparel retailer repurchased 3.5 million shares for $60 million in the fourth quarter, bringing full-year repurchases to 9.5 million shares for $191 million, and authorized an additional 50 million shares for repurchase.

In addition, the company returned approximately $24 million in cash to shareholders through its quarterly dividend of $0.125 per share, bringing year-to-date cash dividends to $96 million.