Gap, American Eagle drops as soft apparel demand weighs

GAP

29/05/2026 10:35

** Shares of Gap GAP.N and American Eagle Outfitters AEO.N dropped 16% and 10.7%, respectively, premarket 
** Gap cut its annual sales forecast on Thursday while AEO kept its annual comparable sales view intact, failing to reassure investors as cautious U.S. consumers kept apparel demand pressured
** Both firms faced pressures in some women's seasonal wear categories, which continue to weigh on their performance in the current quarter
** Gap expects fiscal 2026 sales to be up 1% to 2%, compared with its prior forecast of 2% to 3% growth
** AEO expects current-quarter gross margin to contract as it reported a 27% jump in inventory during Q1
** At least eight brokerages cut PTs on Gap's stock following results, while three cut their targets on AEO - data compiled by LSEG
** Gap down 2.3%, while AEO dropped 32% YTD

 (Reporting by Joel Jose in Bengaluru)
 ((joeljose@thomsonreuters.com))