American Eagle reaffirms annual sales outlook as spending stays cautious

Sept. 9 (Reuters) — American Eagle Outfitters reaffirmed its full-year comparable-store sales forecast on Wednesday, with shoppers increasingly avoiding discretionary categories such as apparel.

The stock dropped about 10% in extended trading.

Apparel demand continues to be inconsistent, as inflation and broader economic uncertainty push consumers to prioritize necessities like fuel and food and hold off on apparel and accessory purchases until discounts appear.

American Eagle, together with rivals including Gap, has contended with softness in specific seasonal product categories over recent months.

The retailer recorded quarterly revenue of $1.38 billion, topping analysts' $1.37 billion average estimate, per LSEG data.

American Eagle raised its operating income target after incorporating $196 million in second-quarter tariff refunds, while again standing by its annual comparable-sales projection — the second such reiteration.

For fiscal 2026, the company continues to forecast mid-single-digit growth in comparable sales, and now projects operating income between $540 million and $550 million, versus its earlier guidance of $390 million to $410 million.