Shares of the Pittsburgh-based apparel retailer are retreating by 5.51% to $14.14 in afternoon trading on Monday.
"Eagle's comps may have recovered somewhat in late December, but its Q4 slowdown could foreshadow other periods of softness in coming months," BB&T analysts said in a note this morning, MarketWatch reports.
Earlier this month, the company said its fiscal 2015 fourth quarter comparable store sales were up by 4% with about three weeks left in the quarter. Analysts had estimated a 4.9% increase.
American Eagle Outfitters could also see more competition from Abercrombie & Fitch Co.'s (ANF) Hollister brand, which has seen a recovery in sales, according to analysts, MarketWatch added.
Separately, American Eagle Outfitters has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's earnings per share, net income and revenue growth, attractive valuation levels, and expanding profit margins.
You can view the full analysis from the report here: AEO
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.