BUZZ-American Eagle slumps on grim revenue forecast; Barclays downgrades to 'underweight'

Reuters
13 Mar
BUZZ-American Eagle slumps on grim revenue forecast; Barclays downgrades to 'underweight'

** Shares of apparel maker American Eagle Outfitters AEO.N down 8.5% at $10.48 in premarket trading

** Co forecast annual revenue below expectations and signaled a demand slowdown for clothing and accessories as well as a hit to margins from U.S. President Donald Trump's tariffs on China

** Barclays downgrades stock to "underweight" from "equal weight" and trims PT to $10 from $17

** Brokerage expects weakening macro to weigh on consumer spending in 2025, especially with growing uncertainty of tariff impact

** "AEO is a vertical retailer and, as such, has direct exposure to potential tariffs levied on sourcing countries," says Barclays

** J.P.Morgan cuts PT to $15 from $19

** Avg rating of 12 brokerages is "hold"; median PT is $17** AEO stock has lost ~31, YTD

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))

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