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.

American Eagle (AEO) stock is sinking after the company withdrew 2025 guidance, warned of an operating loss, and flagged steep discounting and excess inventory