American Eagle said it expects sales to decline 5% in its fiscal first quarter after it saw slow demand and steep discounting.

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.

Shares of American Eagle Outfitters are tumbling 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.