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.

Higher-than-planned markdowns and a $75 million write-off of spring and summer merchandise weighed on profitability.

Shares of apparel retailer American Eagle Outfitters dropped in extended trading Tuesday after the company pulled its 2025 guidance, saying its first-quarter results were "clearly" disappointing.