American Eagle Outfitters forecast 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.

Key Takeaways American Eagle Outfitters said consumers are worried about the future, and gave weaker-than-expected guidance.The maker of fashion clothing for teens and young adults explained that tariffs,

American Eagle Outfitters shares are trading lower by 13% since Monday's open. The company reported fourth-quarter financial results and received a number of analyst rating updates.

American Eagle Outfitters (NYSE:AEO – Get Free Report) had its target price lowered by equities researchers at Telsey Advisory Group from $18.00 to $12.00 in a research report issued to clients and investors on Thursday,

For all of 2024, American Eagle generated total net revenue of $5.3 billion, a 1% increase from the year before, with total comparable sales for the year up 4%, slightly above the 3% of the year before. Comp sales for women's intimates retailer Aerie increased 5% last year while American Eagle's increased 3%.

American Eagle said shoppers are pulling back on spending as it issued mixed holiday quarter results. The apparel retailer beat on the bottom line and posted comparable sales that came in better than expected.

American Eagle (NYSE:AEO) is surrendering a knee-jerk gain of as much as 11% in after-hours trading as the company’s warnings about first quarter and full year sales offset better-than-expected fourth quarter profits and a beat on comparable store sales.