American Eagle Outfitters annual revenue below expectations on Wednesday, joining other major U.S. apparel makers that expect a demand slowdown as shoppers battle the likelihood of pressured budgets again.
American Eagle
Apparel makers and retailers such as Walmart, opens new tab and Target have struck cautious expectations for the year as an uncertain economy burdened by U.S. President Donald Trump‘s seesaw tariff announcements has turned shoppers discerning on buying non-essential items.
“Entering 2025, the first quarter is off to a slower start than expected, reflecting less robust demand and colder weather,” said CEO Jay Schottenstein.
The company expects fiscal 2025 revenue to decline in the low-single digit percentage range, while analysts were expecting a 2.97% rise, according to data compiled by LSEG.
Shares of American Eagle rose 2% in extended trading after slightly edging past quarterly revenue estimates.
Its quarterly revenue fell to $1.61 billion, from $1.68 billion, compared to the analysts’ estimate of $1.60 billion, according to data compiled by LSEG.
