American Eagle holiday-quarter earnings forecast below estimates on higher markdowns

American Eagle Outfitters Inc forecast holiday-quarter earnings below Wall Street estimates on Wednesday, as weaker demand for its flagship AE brand forced the retailer to sell merchandise at higher discounts, sending its shares down about 10%.

The company expects to earn between 34 cents and 36 cents per share in the fourth quarter, well below analysts' expectation of 46 cents, according to IBES data from Refinitiv.