Sept 9 (Reuters) – American Eagle Outfitters reiterated its annual comparable sales forecast on Wednesday, as consumers pulled back on spending on discretionary items including apparel.
Shares fell about 10% in extended trading.
Demand for apparel has remained uneven as inflationary pressures and macroeconomic uncertainty prompt shoppers to focus on essentials such as gas and groceries and wait for promotions before buying clothing and accessories.
American Eagle, like peers such as Gap, has been navigating challenges including weakness in certain seasonal categories in the last few months.
American Eagle posted quarterly revenue of $1.38 billion, above analysts’ estimates of $1.37 billion, according to data compiled by LSEG.
The company reiterated its annual comparable sales forecast for the second time and raised its operating income target after including the impact of $196 million in tariff refunds received during the second quarter.
American Eagle still expects fiscal 2026 comparable sales to be up mid-single-digits. It sees operating income in the range of $540 million to $550 million, compared with a prior range of $390 million to $410 million.
(Reporting by Shania S Thomas and Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
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