Shares of American Eagle Outfitters fell sharply before the opening bell on Wednesday after the retailer withdrew its financial outlook for 2025, citing “macro uncertainty,” and announced $75 million write-down in spring and summer merchandise.

The Pittsburgh-based apparel retailer said late Tuesday that it expects first-quarter revenue to decline by five per cent, dropping below $1 billion. Same-store sales—a key indicator of retail performance—are projected to decrease by approximately three per cent, reports AP.

The company anticipates an adjusted operating loss of about $68 million for the first quarter, driven by the inventory write-down and increased promotional spending.

“Our merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory,” said CEO and Executive Chairman Jay Schottenstein. “As a result, we have taken an inventory write down on spring and summer goods.”

Shares of American Eagle tumbled six per cent at the market open on Wednesday following the announcement.

Schottenstein acknowledged the company's first-quarter performance fell short of expectations and said that American Eagle is working to improve going forward. “Our teams continue to work with urgency to strengthen product performance, while improving our buying principles,” he added.

American Eagle is among a growing number of companies across various sectors that have withdrawn their financial guidance this year amid ongoing economic and geopolitical uncertainty.

A shifting US trade policy, including tariff-related concerns, has contributed to unpredictability around costs for imported goods and impacted consumer confidence.