Gap, American Eagle fall as weak apparel demand signals constrained consumer spending - BNN Bloomberg
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Article Excerpt
Shares of apparel makers Gap and American Eagle Outfitters dropped 15 per cent and 10 per cent, respectively, in premarket trade on Friday after weak annual forecasts, as consumers curb discretionary spending amid a tough macroeconomic climate.
Gap cut its annual sales forecast, while American Eagle maintained its full-year comparable sales and operating profit outlook but flagged a contraction in current-quarter gross margin, stoking worries about near-term demand.
U.S. inflation posted its biggest increase in three years, while consumer sentiment hit a record low in May, forcing households…
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