American clothes and accessories were seen in Retailer American Eagle Store Hong Kong.
Budrul Churut | Lightrocket | Getty images
American Eagle On Wednesday, investors warned that consumers are pulling back at expenses and this has been seen more “slow start” than expected.
CEO J. Shotenstein said in a news release, “Entering in 2025, the first quarter is a slow start with a low strong demand and cold weather.” “When we estimate improvement in the spring season, we are also taking active steps to strengthen the top-line, manage inventory and reduce expenses. As we navigate through an uncertain consumer and operating scenario, we will also be focused on our long-term strategic priorities.”
The shares fell nearly 5% in the extended business.
Downbeat commentary, which came up with weak guidance for the current quarter and year, is the latest warning indication that the consumer may slow down because shopkeepers constantly struggle with concerns around inflation and tariffs.
In the last few weeks, a string of other retailers – both stronger companies and who struggle, which struggle – release weak guidance and cautious comments about the current macroeconomic conditions and warned 2025 that may be weaker than the expected year for sale.
Beyond its perspective, the American Eagle released mixed holiday results and comparative sales that defeat expectations. Here is reported that what the apparel company did compared to Wall Street in its fourth quarter, based on a survey of analysts by LSEG:
- earnings per share: 54 cents Vs 50 cents expected
- Income: $ 1.60 Arab vs $ 1.60 billion expected
The company had net income for a period of three months, $ 6.31 million, or a three -month period of three months compared to $ 6.31 million, or 3 cents a year ago.
Sales decreased slightly by $ 1.68 billion a year ago. Like other retailers, the American eagle benefited from an additional week in the year-old period, the results of which are negatively diagonally.
For the current quarter, the American eagle is expecting a middle—-old decline in sales, while analysts expected an increase in revenue by 1.3%according to LSEG. For the whole year, according to LSEG, it is expecting a lower single digit to decrease with a lower single digit than expectations of 3% increase.
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