american eagle outfitters inc stock fell more than 13 in the extended session wednesday after the retailer reported a smallerthanexpected adjusted quarterly profit and halted its dividend saying it anticipates having to offer more markdowns in an “unprecedented time in retail” american eagle aeo said it lost 425 million or 24 cents a share in the quarter swinging from earnings of 1215 million or 56 cents a share in the yearago period revenue was flat at 12 billion the company said which matched expectations from analysts polled by factset the analysts expected adjusted earnings of 13 cents a share for the quarter however american eagle said its inventory increased 36 to 687 million compared to 504 million at the end of last year’s quarter “as we cycle exceptional demand from last year a tougher macro environment is impacting consumer spending behavior” and the quarter “reflected these challenges constraining revenue and amplifying margin pressure as we fully cleared through excess spring and summer goods” chief executive jay schottenstein said in a statement the demand trend remains “difficult” he said american eagle guided for a thirdquarter gross margin rate in the mid30s and fourth quarter rate in the low30s “this reflects higher markdowns in anticipation of a more promotional retail environment and the company’s seasonal clearance cadence which is more weighted to the fourth quarter” american eagle said see also gamestop stock jumps 10 after retailer’s narrower quarterly loss crypto deal management has focused on cutting costs and expects about 100 million in annualized savings compared with a prior target of 60 million the company said shares of american eagle ended the regular trading day up 28 so far this year the stock has lost 54 compared with losses of around 18 for the sp 500 index spx  don’t miss here’s what the big inventory problem for retailers looks like