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

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.

American Eagle (NYSE:AEO) is surrendering a knee-jerk gain of as much as 11% in after-hours trading as the company’s warnings about first quarter and full year sales offset better-than-expected fourth quarter profits and a beat on comparable store sales.