American Eagle Outfitters stock was tumbling Tuesday after the apparel maker said it swung to a loss in its fiscal first quarter and pulled guidance for the rest of the year.

American Eagle expects to report an adjusted operating loss of about $68 million for the quarter ended May 3, the company said in preliminary first-quarter results released Tuesday afternoon. Analysts polled by FactSet were projecting operating income of $23 million.

The adjusted loss reflects higher-than planned markdowns in the quarter, and an inventory charge of about $75 million related to a write-down of spring and summer merchandise, executives said.

“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,” said CEO Jay Schottenstein in a statement.

Shares of American Eagle plummeted 13.5% in overnight trading. The stock has shed 24% this year, and is down close to 50% in the past 12 months.

The adjusted loss strips out an additional asset impairment and restructuring charge of roughly $17 million, the company said, tied to closing two fulfillment centers. The unadjusted operating loss was $85 million, also much wider than analyst estimates calling for a $24 million gain.

American Eagle also withdrew its outlook for fiscal 2025, citing macroeconomic uncertainty and the need to review plans following the disappointing first-quarter performance. Prior guidance, issued in March, called for full-year operating income of $360 million to $375 million. The company was projecting a low-single digit decline in revenue.

Indeed, revenue was the single silver lining in American Eagle’s pre-report. Sales fell 5% year over year to $1.1 billion, roughly in line with both expectations and the company’s guidance.

Given that these are preliminary results, the final figures could fluctuate as the company wraps up its quarter-end closing process. American Eagle is still scheduled to report final results May 29, when it plans to hold a conference to discuss the first quarter.