finance
Gap and American Eagle shares fall after weak sales forecasts
Gap and American Eagle Outfitters shares declined in early trading after both companies issued lower-than-expected sales forecasts. The moves reflect reduced consumer spending on discretionary goods.
May 29, 3:50 PM·1m read1 source
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Shares of Gap and American Eagle Outfitters fell in early trading after each company released sales forecasts below analyst expectations. The declines occurred on the same day both retailers reported results for the most recent quarter. Gap shares dropped as much as 16 percent, while American Eagle shares fell as much as 19 percent.
Gap projected comparable sales growth of 1 percent to 2 percent for the current fiscal year. American Eagle forecast comparable sales to decline in the low-single-digit range for its namesake brand. Both companies cited softer demand for apparel and accessories. The forecasts were released after market close the previous day.
Trading volume for both stocks rose above average levels in the first hour of the session. No company executives were quoted in the reports covering the announcements.
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