- Abercrombie & Fitch (ANF) stock fell nearly 14% to $83.27 in early Wednesday trading, hitting a low of $79.77, as its 2025 sales growth forecast of 3% to 5% missed the 5.5% analyst target, citing tariff impacts.
- The company reported a strong 2024 with net sales up 16% to $4.95 billion, a 15.0% operating margin, and EPS of $10.69, but expects a softer 2025 with EPS guidance of $10.40 to $11.40 against an $11.30 consensus.
- Abercrombie announced a $1.3 billion share repurchase program, including $400 million for 2025, bolstered by a 14% Q4 comparable sales rise and brand growth of 16% for Abercrombie and 15% for Hollister.
Abercrombie & Fitch Co. (ANF) is facing a tough day in the market, with its stock plunging nearly 14% to $83.27 in early trading on Wednesday, March 05, 2025, after dipping as low as $79.77—the lowest since late 2023. The drop stems from a 2025 sales forecast that’s disappointed investors, projecting just 3% to 5% growth against analyst hopes of 5.5%. The company’s pinning part of this conservative outlook on tariffs hitting goods from China, Mexico, and Canada, as outlined in February. Abercrombie made it clear this guidance doesn’t account for wild cards like new U.S. tariffs, foreign retaliatory tariffs, or other policy shifts, which adds a layer of uncertainty. Still, the retailer’s not coming off a weak year—2024 net sales climbed 16% to $4.95 billion, fueled by a 17% jump in comparable sales across its brands and regions.
Looking at the bigger picture, Abercrombie’s 2024 performance was solid. Fourth-quarter net sales grew 9%, with comparable sales up 14%, while the full-year operating margin hit 15.0%, a 370-basis-point improvement from 2023. Earnings per share (EPS) soared 72% to $10.69, showing the company’s been firing on all cylinders. The Abercrombie brand saw sales rise 16%, and Hollister wasn’t far behind with a 15% increase, bolstered by a standout 19% comparable sales gain. But 2025 looks trickier. The company’s expecting that operating margin to dip slightly to 14% – 15%, and EPS guidance of $10.40 to $11.40 falls short of the $11.30 analysts were banking on. Tariffs are only part of the story—Abercrombie’s also bracing for a softer consumer spending environment, which could crimp demand for its apparel.
Despite the stock’s tumble to an intraday low of $79.77, Abercrombie’s trying to signal confidence with a new $1.3 billion share repurchase program, including $400 million slated for 2025. That’s a hefty commitment, suggesting management believes the nearly 14% drop might overstate the challenges ahead. The tariff impact isn’t hypothetical—it’s baked into that 3% to 5% sales growth forecast, reflecting real costs on imports that make up a chunk of their supply chain. Still, 2024’s $4.95 billion in sales and 17% comparable growth show a brand with staying power, even if the 2025 outlook – capped at 5% – feels cautious compared to the 5.5% Wall Street wanted. With Hollister’s 19% comparable sales pop and Abercrombie’s 16% brand growth, the company’s not losing its edge; it’s just navigating a bumpier road. The market’s reaction, driving shares 14% lower, reflects the tension between a strong past and a tariff-clouded future.
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