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 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 (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.