American Eagle Outfitters Inc. lowered its full-year revenue projection as apparel demand slowed due to ongoing high inflation. In the United States, higher rent and product prices affected consumer spending, lowering demand for luxuries as cash-strapped consumers focused on necessities like groceries. In contrast to its previous projection of flat to up low-single digits, the company now anticipates annual revenue to be flat to down low-single digits. While its eponymous segment reported a 2 per cent decline, American Eagle saw revenue for Aerie, a subsidiary that produces sportswear, swimwear and bralettes, grow 12 per cent in the first quarter. According to Refinitiv data, American Eagle’s first-quarter sales increased by 2.5 per cent to US $ 1.08 billion, exceeding analysts’ average expectation of US $ 1.07 billion.

Source: Forbes May 26, 2023 12:43 UTC