American Eagle Outfitters Inc. was downgraded to hold from buy at BB&T Capital Markets on analyst concern that the retailer won’t be able to regain momentum after a sales slowdown in December. “Eagle’s comps may have recovered somewhat in late December, but its Q4 slowdown could foreshadow other periods of softness in coming months,” analysts wrote in a Monday note. The bank sees difficult comparisons to come and believes the resurgence of the Abercrombie & Fitch Co. Hollister brand is a risk. With new American Eagle offerings, like the Denim-X line, already incorporated into the company’s merchandise, analysts believe there might not be enough opportunity for assortment innovation in 2016. American Eagle Outfitters shares are down 5.3% in Monday trading and down 1.5% over the past 12 months. The S&P is down 7.7% for the past year.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News