(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.

American Eagle Outfitters in March reported Q4 2024 net revenue declined 4% to $1.6 billion while comps rose 3% and operating income rose slightly to $142 million. The company at the time expected its Q1 2025 results to feature a mid-single-digit revenue decline and an operating income of $20 million to $25 million.

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