Abercrombie & Fitch’s (NYSE:ANF) shares withered Wednesday, on word the company’s growth story is starting to slow down.
The apparel retailer issued weaker-than-expected guidance for its current quarter and fiscal 2025, and said it expects its sales will grow more slowly than Wall Street anticipated.
Abercrombie is expecting sales to rise between 3% and 5% in fiscal 2025, well below estimates of 6.8% growth, according to LSEG. During its current quarter, the company anticipates earnings per share will be between $1.25 and $1.45, short of expectations of $1.97.
Shares fell nearly 5% in premarket trading.
Beyond its guidance, Abercrombie narrowly beat Wall Street’s expectations in its fiscal fourth quarter.
Earnings per share proved to be $3.57 vs. $3.54 expected, on revenues of $1.58 billion vs. $1.57 billion expected
The company’s reported net income for the three-month period that ended Feb. 1 was $187 million, or $3.57 per share, compared with $158 million, or $2.97 per share, a year earlier.
Sales rose to $1.58 billion, up 9% from $1.45 billion a year earlier.
Following about two years of explosive stock and sales growth, Abercrombie’s business appears to be leveling out, and the markets may be turning away from retail’s biggest star in favor of names with more immediate upside.
The company is still growing, and working to build out its international market, but it’s unclear if it’s still going to see the blockbuster numbers it’s been putting out after implementing a turnaround under CEO Fran Horowitz.
ANF shares tumbled $14.25, or 14.8%, to $81.86.
