Shares of Abercrombie & Fitch Company (NASDAQ:ANF) are falling Monday after the company shared a business update and adjusted its outlook for the fiscal year.
Narrowed Expectations Raise Concerns
Abercrombie & Fitch provided a business update for the holiday season on Monday, noting that quarter-to-date net sales through fiscal December aligned with company expectations. The retailer also provided an outlook for the full year of fiscal 2025.
Abercrombie & Fitch previously set net sales growth in the range of 6% to 7%, but has now committed to 6%. The company also narrowed expectations for operating margin by half a percentage point, now saying it’s likely to come in around 13%.
“We remain on track for another year of significant progress, consistently delivering on our goals with expected record net sales,” CEO Fran Horowitz said.
Abercrombie and Fitch also bumped up its guidance for net income per diluted share and said that it expects to spend $20 million more than previously forecasted.
The company’s outlook includes the “estimated impact from the tariffs” using current policies, but it warned that its predictions don’t take into account potential future trade policy changes imposed by the U.S. or other countries.
The company said it’s setting aside around $90 million to mitigate the impact of tariffs, which equates to about 1.7% of net sales.
Abercrombie & Fitch Stock Is Facing Selling Pressure
ANF Price Action: Abercrombie & Fitch shares were down 15.11% at $105.87 at the time of publication, according to Benzinga Pro.
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