American clothing and accessories retailer American Eagle is visible in Hong Kong.
budrul chukrut | lightrocket | getty image
American Eagle Investors warned Wednesday that consumers are retreating spending, which is already a “slow starting point” than expected.
“Earing 2025, the first quarter starts slowly than expected, reflecting lower demand and lower weather,” CEO Jay Schottenstein said in a press release. “Although we expect we are taking positive steps to strengthen the frontline, manage inventory and reduce spending as we navigate in uncertain consumer and operational environments, we will also continue to focus on long-term strategic priorities.”
Stocks fell about 5% in expansion trading.
Light comments are the latest warning signs that consumers may slow down as shoppers see continued inflation and tariff concerns.
Over the past few weeks, many other retailers, including strong companies and struggling retailers, have issued weak guidance and cautious comments on the current macroeconomic situation and warned that 2025 may be weaker than expected sales years.
In addition to the prospect, the American Eagle also issued mixed holiday results and comparable sales than expected. According to an LSEG survey of analysts, this is the way clothing companies have to do in the fourth quarter of fiscal year compared to expectations:
- Earnings per share: 54 cents Estimated 50 cents
- income: $1.60 Billion vs. Expected $160 billion
The company reported net income of $104 million, or 54 cents per share, over the three-month period ending February 1, compared with $6.31 million or 3 cents per share a year ago.
Sales fell to $160 billion, slightly lower than $1.68 billion in the same period last year. Like other retailers, the U.S. Hawk benefited from an additional week in the same period last year, with a bias in the results.
According to LSEG, U.S. Hawks expect sales to fall, while analysts expect revenue to rise 1.3% in the quarter. According to LSEG, it expects sales to fall lower over the entire year, while expected to increase by 3%.
