Along with other significant American clothing manufacturers, American Eagle Outfitters reported lower-than-expected annual revenue. The company anticipates a slowdown in demand as consumers contend with the possibility of budget pressures once more.
Walmart, Target, and other apparel manufacturers have set cautious estimates for the year as consumers have become pickier about non-essential purchases due to an uncertain economy weighed down by US President Donald Trump’s seesaw tariff announcements.
CEO Jay Schottenstein noted that the first quarter of 2025 is off to a slower start than anticipated, driven by weaker demand and colder weather conditions. According to statistics provided by LSEG, analysts were anticipating a 2.97 per cent increase in fiscal 2025 sales, while the company anticipates a fall in the low-single digit percentage range.
After marginally exceeding quarterly revenue projections, American Eagle’s stock increased 2 per cent in extended trade. According to figures produced by LSEG, its quarterly revenue dropped from US $ 1.68 billion to US $ 1.61 billion, which was less than the US $ 1.60 billion experts had predicted.
