American Eagle Warns of Slower Sales as Consumer Spending Tightens

The retailer's Q4 earnings exceeded expectations, but cautious guidance for 2025 reflects economic uncertainty and reduced demand.

American Eagle Outfitters reported Q4 earnings of $0.54 per share, surpassing analyst expectations of $0.51, with revenue of $1.60 billion matching estimates.
Comparable sales grew 3% in the quarter, driven by a 6% increase in Aerie sales, while the American Eagle brand saw only 1% growth.
The company projects a low-single-digit decline in full-year revenue for 2025, citing colder weather, inflation, tariffs, and reduced government support as factors impacting consumer spending.
CEO Jay Schottenstein highlighted proactive measures to manage inventory, cut expenses, and strengthen revenue as the company navigates economic uncertainty.
American Eagle shares have dropped significantly over the past year, reflecting investor concerns over the retailer's cautious outlook and broader market conditions.