Shares of American Eagle sank 13 percent after the company issued weak holiday guidance.

American Eagle Shares fell nearly 13 percent in extended trading Wednesday after the company reported third-quarter earnings in which it issued weaker holiday guidance and lowered its full-year forecast. The company said it is competing with value-seeking consumers who are willing to spend only during key shopping moments.

The apparel retailer slightly missed Wall Street expectations on the top line, but beat on the bottom line.

Here’s how American Eagle performed during its fiscal third quarter, compared to Wall Street’s expectations, based on a survey of analysts by LSEG:

• Earnings per share: 48 cents adjusted vs. 46 cents expected
• Income: $1.29 billion vs. $1.30 billion expected

The company reported net income of $80 million, or 41 cents per share, for the three-month period ended Nov. 2, compared with $96.7 million, or 49 cents per share, a year earlier. Excluding one-time charges related to restructuring and impairment charges, American Eagle posted adjusted earnings of 48 cents per share.

Sales fell about 1 percent to $1.29 billion from $1.3 billion a year ago.

Although it was narrow, Wednesday’s miss was the third consecutive quarter that American Eagle missed Wall Street’s sales targets.

In a statement, CEO Jay Schottenstein noted a “strong” back-to-school shopping season but said demand is inconsistent amid major shopping events.

“We’re well-positioned heading into the holiday season, with our leading brands offering high-quality merchandise, great gifts and a great shopping experience across all channels,” said Schottenstein. “There has been a positive response from customers during key sales periods, yet we remain aware of potential declines during non-peak periods.”

Consumers coming out for key shopping moments followed by a sharp drop in sales has been a consistent theme throughout the retail industry. Foot Locker Referred to a Similarly dynamic When reporting earnings earlier Wednesday, as it did. Dollar tree.

For its holiday quarter, American Eagle is expecting comparable sales to rise about 1 percent, with total sales down about 4 percent, including an $85 million impact. A low-selling week And later the start of the holiday shopping season. The outlook is below the 2.2% rate of sales comparable StreetAccount was looking for and LSEG’s expected sales decline of 1%.

As a result, American Eagle now expects comparable sales to grow 3% for the full year, below prior guidance for 4% growth and below StreetAccount’s estimate of 4.1%. It now expects full-year sales to rise 1%, down from previous guidance of between 2% and 3% and below LSEG’s expectations for 2.5% growth.

Like other retailers, American Eagle took a cautious approach in the back half of the year as did its competition. Uncertainty about 2024 elections and the overall macroeconomic environment. But unlike its rivals, it has retained that cautious tone.

both Abercrombie & Fitch And Dick’s Sporting Goodswhich Issued a cautious approach earlier this year, reversed its former mode. when Reporting income earlier this month.

Despite the lackluster outlook and lackluster sales, American Eagle is seeing strong demand for its Airy brand. Third-quarter revenue for Erie came in at an all-time high for the company, and comparable sales rose 5%, on top of a 12% increase from the year-ago period.