American Eagle Outfitters forecast annual revenue below expectations on Wednesday, joining major U.S. apparel makers that expect a demand slowdown for clothing and accessories as shoppers battle the likelihood of pressured budgets again.

For all of 2024, American Eagle generated total net revenue of $5.3 billion, a 1% increase from the year before, with total comparable sales for the year up 4%, slightly above the 3% of the year before. Comp sales for women's intimates retailer Aerie increased 5% last year while American Eagle's increased 3%.

American Eagle said shoppers are pulling back on spending as it issued mixed holiday quarter results. The apparel retailer beat on the bottom line and posted comparable sales that came in better than expected.