American Eagle cuts annual revenue forecast on weak apparel demand
Reuters
American Eagle Outfitters
Higher rent and product prices in the United States dented consumer spending, hurting demand for discretionary items as cash-strapped shoppers focused on essentials such as groceries.
The company now expects annual revenue to be flat to down low-single digits, compared with its prior forecast of flat to up low-single digits.
That is in contrast with peer Abercrombie & Fitch
American Eagle, however, saw revenue for Aerie
The company posted quarterly gross margin rate of 38.2%, compared with 36.8% a year earlier, benefiting from lower transportation costs, compensation and delivery costs.
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But gradual easing of such costs and lower clearance discounts have offered some relief to most retailers.
American Eagle’s first-quarter revenue rose 2.5% to $1.08 billion, beating analysts’ average estimate of $1.07 billion, according to Refinitiv data.
The company posted quarterly adjusted earnings of 17 cents per share, in line with analysts’ expectations.
