Abercrombie & Fitch shares fell on Wednesday. The company reported better-than-expected quarterly results but gave a cautious outlook for the year, pointing to slower sales growth and increasing tariff pressures.
The company posted adjusted earnings of $3.68 per share for its fiscal fourth quarter, beating the $3.57 analysts expected. Net sales were $1.67 billion, matching forecasts, and comparable-store sales rose 1% from last year.
Even with the earnings beat, the stock dropped about 5% in premarket trading. This added to a year-to-date decline of around 21% through Tuesday’s close. The slide started after the company lowered its fourth-quarter outlook in January.
For the year ahead, management expects net sales to grow by 3% to 5%, which is lower than the 6% growth seen in fiscal 2025. First-quarter revenue is expected to rise 1% to 3%, below the nearly 5% analysts predicted. The company also warned that import tariffs from the Trump administration will weigh on results, with tariff and mitigation costs expected to reduce net sales by 2.9 percentage points in the first quarter and by 0.7 percentage points for the full year.
