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

(Reuters) -American Eagle Outfitters on Tuesday withdrew its annual forecasts due to macroeconomic uncertainty and said it took a roughly $75 million inventory charge in the first quarter related to the write-down of its spring and summer merchandise.

Merch strategies “did not drive the results we anticipated,” teen and young-adult favorite American Eagle says.