American Eagle falls on margin pressure, sluggish apparel demand
10/09/2026 09:20
BUZZ-American Eagle falls on margin pressure, sluggish apparel demand ** American Eagle Outfitters AEO.N shares fall about 11% in premarket trade on Thursday after firm reiterated its annual comparable sales forecast
** Apparel retailer expects persistent pressure on seasonal categories such as shorts, leading to increased clearance activity and a 14% rise in quarterly inventory costs
** Expects current-quarter gross margin to be flat Y/Y, with uneven apparel demand continuing as shoppers focus on essentials due to stubborn inflation
** Jefferies says strength at Aerie, the retailer's intimates and activewear brand, was not enough to outweigh continued headwinds
** AEO shares have dropped about 38% YTD, underperforming the S&P 500's .SPX rise of about 12%
(Reporting by Rashika Singh in Bengaluru)
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