American Eagle Outfitters Inc ( AEO ) shares are tumbling in Tuesday’s after-hours session after the company reported preliminary results for the first quarter and withdrew its full-year guidance.

What Happened: After the market close on Tuesday, American Eagle said in a filing that it expects to report first-quarter revenue of $1.1 billion, representing a decline of 5% year-over-year.

The specialty retailer expects first-quarter comparable sales to be down approximately 3%, with American Eagle down 2% and Aerie down 4%. The company also anticipates an operating loss of approximately $85 million, or $68 million on an adjusted basis.

The anticipated loss reflects higher than planned promotional activity in the first quarter, as well as an inventory charge of roughly $75 million related to a write-down of spring and summer merchandise.

American Eagle also announced that it’s withdrawing its full-year 2025 guidance due to “macro uncertainty.”

“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write-down on spring and summer goods,” said Jay Schottenstein, executive chairman and CEO of American Eagle.

"We have entered the second quarter in a better position, with inventory more aligned to sales trends. Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.”

American Eagle will report its first-quarter results after the market close on May 29. The company will hold a conference call at 4:30 p.m. ET that day to further discuss the shortfall.

AEO Price Action: American Eagle shares were down 14.86% after-hours, trading at $10.83 at the time of publication on Tuesday, according to Benzinga Pro.

Read Next:

Target’s Self-Checkout Flip-Flop Isn’t Helping After A 66% Value Crash: Are Retail ETFs Ringing Up The Real Risk?