By MICHELLE CHAPMAN, Associated Press Business Writer

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 said late Tuesday that it expects first-quarter revenue to slide 5%, or more than $1 billion. Same-store sales, a key gauge of a retailer’s health, are projected to fall about 3%.

The Pittsburgh company foresees a first-quarter adjusted operating loss of about $68 million due to the inventory write-down as well as heavier spending on promotions.

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The company’s stock slumped 6% at the opening bell Wednesday.

CEO and Executive Chairman Jay Schottenstein said the retailer is unhappy with its execution during the first quarter.

“Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory,” Schottenstein said in a statement. “As a result, we have taken an inventory write down on spring and summer goods.”

A large number of companies across multiple sectors have withdrawn financial guidance this year as a U.S.-led trade war creates uncertainty about costs for imported goods. The massive shift in U.S. trade policy has unsettled consumers as well and there are early signs that may Americans are becoming more judicious about spending.

American Eagle cited macro uncertainty as it pulled it 2025 financial guidance as it reviews future plans.

Schottenstein said American Eagle is in a better position for the second quarter, with inventory more aligned to sales trends.

“Our teams continue to work with urgency to strengthen product performance, while improving our buying principles,” he said.

Paul Lejuez of Citi Investment Research said in a note to clients that he expects American Eagle to aggressively cut its inventory plans for the second half of the year and to focus on cost control.

“With the demand picture less clear and margin pressure from tariffs, promos and freight, American Eagle is in a tough spot to navigate the current uncertain environment,” he wrote.

American Eagle reports first-quarter financial results on May 29.