American Eagle on Tuesday said it is writing off $75 million in spring and summer merchandise and withdrawing its full-year guidance as it contends with slow sales, steep discounting and an uncertain economy.

Shares of American Eagle Outfitters are tumbling before Wednesday’s opening bell after the retailer withdrew its financial outlook for the year citing “macro uncertainty” and said it would write down $75 million in spring and summer merchandise.

American Eagle Outfitters in March reported Q4 2024 net revenue declined 4% to $1.6 billion while comps rose 3% and operating income rose slightly to $142 million. The company at the time expected its Q1 2025 results to feature a mid-single-digit revenue decline and an operating income of $20 million to $25 million.