Despite economic concerns, consumers continue to spend. Here's the reason behind it.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy AEO?
Source: CNBC
Consumer Sentiment vs. Spending: Despite low consumer sentiment due to economic concerns, U.S. shoppers have shown resilience, with record turnout during the holiday shopping season and many retailers exceeding sales expectations.
Economic Pressures: Factors such as high living costs, inflation, and selective spending behavior have influenced consumer habits, leading to a focus on value-oriented purchases and discounts.
Divergence in Spending Behavior: There is a notable gap between consumer sentiment and actual spending, with higher-income households continuing to spend despite expressing economic worries, while lower-income consumers remain resilient.
Retailer Strategies and Market Dynamics: Retailers are adapting to changing consumer behavior by offering deals and managing inventory carefully, but caution remains as many businesses face unpredictability in consumer spending patterns.
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Analyst Views on AEO
Wall Street analysts forecast AEO stock price to fall
11 Analyst Rating
1 Buy
8 Hold
2 Sell
Hold
Current: 24.540
Low
18.00
Averages
23.90
High
35.00
Current: 24.540
Low
18.00
Averages
23.90
High
35.00
About AEO
American Eagle Outfitters, Inc. is a global specialty retailer. The Company offers clothing, accessories and personal care products under its American Eagle and Aerie brands. The Company operates through two segments: American Eagle and Aerie. American Eagle is an American jeans and apparel brand. Aerie is a lifestyle brand offering intimates, apparel, activewear, and swim collections. OFFLINE by Aerie offers a complete collection of activewear and accessories. The Company sells its products directly to consumers through its retail channel, which includes its stores and concession-based shops-within-shops. It operates stores in the United States, Canada, Mexico, and Hong Kong. The Company has license agreements with third parties to operate American Eagle and Aerie stores and online marketplace businesses throughout Asia, including India, Europe, Latin America, and the Middle East. The Company also operates Todd Snyder New York (Todd Snyder), a premium menswear brand.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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