Abercrombie & Fitch Stock Falls After Weak 2025 Guidance Despite Strong Q4 Performance

The retailer surpassed sales and earnings expectations for the holiday quarter, but investors were disappointed by slower growth projections and cautious outlook.

Abercrombie & Fitch reported Q4 earnings of $3.57 per share and revenue of $1.58 billion, narrowly beating Wall Street expectations.
Comparable sales rose 14% in Q4, with Hollister outperforming the flagship Abercrombie brand for the first time since 2022.
The company projected 2025 sales growth of 3-5%, below analysts' expectations of 6.8%, and Q1 earnings per share between $1.25 and $1.45, also falling short of forecasts.
Shares dropped 15% in early trading as investors reacted to the weaker-than-expected guidance and concerns about a challenging retail environment.
CEO Fran Horowitz emphasized a strategic focus on sustainable, profitable growth, leveraging strong margins and global expansion opportunities despite softening consumer demand.