Abercrombie & Fitch Stock Drops Over 14% After Weak 2025 Forecast

The retailer's cautious sales and earnings projections, coupled with tariff concerns, have unsettled investors despite a strong 2024 performance.

Abercrombie & Fitch projects fiscal 2025 sales growth of 3% to 5%, falling short of Wall Street's 6.8% expectation.
First-quarter earnings per share are forecasted between $1.25 and $1.45, well below the $1.97 consensus estimate.
The company cited impacts from recently imposed tariffs on imports from China, Mexico, and Canada, which could reduce operating margins by up to 1 percentage point.
Despite a strong 2024 with 16% sales growth and a 15% operating margin, investors reacted sharply to the softer outlook, causing shares to plummet over 14%.
Abercrombie announced a $1.3 billion share repurchase program for 2025, signaling confidence in its long-term strategy despite near-term challenges.