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.

Shares of young adult apparel retailer American Eagle Outfitters (NYSE:AEO) fell 6.9% in the morning session after the company pulled its financial outlook for the year, citing "macro uncertainty." It also planned to write down $75 million in spring and summer merchandise.

Shares of American Eagle Outfitters are tumbling 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.