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