Shares of American Eagle Outfitters plunged about 13% in extended trading on Wednesday after the retailer reported tepid sales expectations for the holiday season in its third-quarter earnings report.
The Pittsburgh-based apparel company said it expects fourth-quarter comparable sales to be up about 1% with total sales down about 4%, TipRanks Financial reported.
Analysts had forecast a 2.2% growth in comparable sales.
The company is also expecting an $85 million impact from the holiday calendar, which shaves a week off the selling time, it stated.
It said growth of comparable sales are expected at 3% for the full year, down from previous guidance of 4%.
Shoppers have continued to slow spending on clothing and shoes and the holiday shopping season is expected to be tepid, the Wall Street Journal reported.
Jay Shottenstein, the CEO and executive chairman of the board, tried to put a positive spin on the report and said, "Key selling periods have seen a positive customer response."
"Yet we remain cognizant of potential choppiness during non-peak periods," he said.
American Eagle reported an overall profit of $80 million for the quarter ending Nov. 2, compared to $96.7 million from the prior year period.
