Abercrombie Stock Dives On Disappointing Guidance: Retail Sentiment Sours

Shares of Abercrombie & Fitch Co. ($ANF) fell nearly 15% on Monday even as the company raised its sales outlook for the fourth quarter and fiscal 2024, disappointing Wall Street and dampening retail sentiment.

The retailer increased its fourth-quarter net sales growth outlook to 7%-8% from the prior range of 5%-7% based on its recent “better-than-expected” holiday sales data. It also increased full-year net sales growth outlook to around 15% from a previous range of 14%-15%.

The company affirmed its prior fourth-quarter operating margin outlook of around 16% and full-year outlook of around 15%.

“Through fiscal December, we delivered record quarter-to-date net sales, exceeding the expectations we provided in November. Total net sales growth was supported by comparable sales across regions and brands through the holiday selling period,” said Fran Horowitz, CEO of Abercrombie. “In 2025, we will look to continue sustainable, profitable growth through the execution of our playbooks to win and retain customers around the world. Our goal is to leverage our healthy margin structure and balance sheet to grow operating income dollars and earnings per share at rates faster than sales.”

Jeffries has a ‘Buy’ rating on the company with a $220 price target, Fly.com reported, citing the firm. According to the report, the company’s long-term update from its management also highlighted its plan for operating income and EPS to grow faster than sales.

Retail sentiment on Stocktwits turned ‘extremely bearish’ compared to ‘bullish’ a day ago. Message volumes rose to ‘extremely high’ from ‘normal.’

ANF sentiment meter and message volumes on Jan 13 as of 5:35 am ET

ANF stock is down 10% year-to-date.

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