American Eagle Struggles To Soar As Tariffs And Mall Traffic Woes Mount
Not even America’s iconic eagle can escape the retail storm brewing across the nation’s malls. Despite beating Wall Street’s Q4 expectations, retailer American Eagle warned of a “slower start” to 2025 as consumers pull back spending — compounding woes for a stock already down 51.9% from last year.
- reported $0.54 EPS (vs. $0.51 expected by analysts polled by LSEG), and its $1.6B revenue met par but forecasted a full-year sales decline (vs. 3% growth expected) — citing consumer “fear of the unknown” as tariffs, inflation, and government cuts loom.
- With 20% of products sourced from China, the retailer anticipates a $5-10M tariff hit while declining mall traffic and product availability struggles added blows — prompting a $300M strategy to remodel 90-100 stores this coming year.
Wall Street reaction: Post-earnings, stumbled 4.2% to $10.98 at yesterday’s close as analysts slashed price targets across the board — with Jefferies cutting to $13, Citi to $12, JPMorgan to $15, and Morgan Stanley to $12. The most damaging was Barclays’ downgrade to Underweight with a $10 target, citing a weakening consumer base and declining mall traffic as key concerns. Analysts remain skeptical about the Eagle’s ability to soar in economic headwinds.
