American Eagle defers Q1 dividend payment, furloughs employees

American Eagle Outfitters, Inc. has announced that in response to ongoing store closures due to COVID-19, the company is taking a series of actions to preserve financial strength including a suspension of its share repurchase program and deferred payment of the first quarter cash dividend; temporary furloughs of store, field and corporate associates beginning April 5, largely reflecting the continued uncertainty around the duration of store closures; reductions to operating expense, which include delayed merit increases for associates, a hiring freeze and other cost saving initiatives; cuts to inventory receipts to align with lower demand due to store closures; and reduced capital expenditures across stores, IT and other projects.