NEW YORK (TheStreet) -- American Eagle Outfitters (AEO) - Get Report stock rating was cut to "hold" from "buy" at BB&T Capital Markets after sales weakened in the 2015 fourth quarter.

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.

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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. 

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