(Reuters) - American Eagle Outfitters cut its target for annual comparable sales growth on Wednesday, in signs that apparel demand could be erratic during the holiday shopping season, sending its shares down 8% in extended trade.

Competition has heated up in the apparel space as companies vie for shoppers who are being cautious about their non-essential spending, with a focus on fresh styles and nifty marketing.

While some apparel companies, including Gap and Abercrombie & Fitch, have benefited from demand for their popular casual wear styles, a holiday shopping season marked by discerning shoppers and high promotions has forced most retailers to be cautious about their expectations in the key sales period.

"Key selling periods have seen a positive customer response, yet we remain cognizant of potential choppiness during non-peak periods," said CEO Jay Schottenstein.

The Aerie parent now expects annual comparable sales growth of about 3%, compared with prior expectations for a roughly 4% rise.

(Reporting by Juveria Tabassum; Editing by Alan Barona)