Macy's Beats Q3 Expectations but Shares Drop Over 6%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2025
0mins
Should l Buy AEO?
Source: Newsfilter
- Earnings Beat: Macy's reported third-quarter results that exceeded Wall Street expectations, marking its strongest growth in over three years; however, shares fell more than 6% before the bell, indicating market concerns over consumer spending and tariff pressures.
- Consumer Shopping Surge: Over 202 million Americans shopped during the five-day period from Thanksgiving to Cyber Monday, the highest number on record since 2017, reflecting increased consumer activity, yet Macy's cautious outlook may impact future performance.
- Intensifying Industry Competition: Following Macy's earnings report, shares of American Eagle Outfitters surged 12% due to better-than-expected earnings and optimistic guidance for fourth-quarter sales, highlighting the intensifying competition in the retail sector.
- Employment Market Pressure: Despite claims from the Trump administration that tariffs would bring back manufacturing jobs, surveys indicate executives are increasingly concerned about layoffs and severance packages, reflecting the negative impact of supply chain uncertainties on the job market.
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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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- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
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