American Eagle Shares Drop After Weak Holiday Forecast and Sales Miss

The retailer reported lower-than-expected Q3 revenue and adjusted its annual sales growth projections as consumer demand remains inconsistent.

American Eagle Outfitters reported Q3 revenue of $1.29 billion, narrowly missing Wall Street expectations of $1.30 billion, with net income falling to $80 million from $96.7 million a year earlier.
Comparable sales grew 3%, slightly below analysts' expectations, while the Aerie brand saw stronger performance with a 5% increase in comparable sales.
The company reduced its full-year comparable sales growth forecast to 3%, down from prior guidance of 4%, citing inconsistent consumer demand outside of peak shopping periods.
Holiday quarter projections include a 1% increase in comparable sales but a 4% decline in total sales, influenced by a shorter retail calendar and cautious consumer spending.
Shares of American Eagle fell 13% following the earnings report, reflecting investor concerns over the weak holiday outlook and broader macroeconomic challenges in retail.