Abercrombie & Fitch (ANF) plunged in premarket trading after providing a guidance update that included the crucial holiday quarter.
The retailer updated its Q4 and full-year outlook to reflect stronger-than-expected sales growth and solid profitability, driven by continued momentum across brands and regions.
The company expects Q4 sales growth of around 5%, above its prior range, while maintaining an operating margin outlook of around 14%, supported by healthy holiday demand and disciplined inventory management. Q4 EPS is seen landing in a range of $3.50 to $3.60 (midpoint $3.55) vs. a prior outlook for $3.40 to $3.70 and the consensus estimate of $3.60.
For the full fiscal year, Abercrombie & Fitch (ANF) anticipates sales growth of at least 6% and an operating margin around 13%, which was said to be an indication of performance ahead of its longer-term “Always Forward” 2025 financial targets. A&F management highlighted record quarter-to-date results through December, strong comparable sales across regions and brands, and reaffirmed confidence in the company’s ability to deliver sustainable, profitable growth from its strengthened omnichannel platform, agile inventory model, and solid balance sheet.
In terms of tariffs, A&F said, net of planned mitigation efforts, the full-year outlook assumes approximately $90 million of tariff expense, or 170 basis points as a percent of sales.
Abercrombie & Fitch (ANF) will be participating in the ICR Conference in Orlando this week.
Shares of Abercrombie & Fitch (ANF) were down 16.5% in premarket trading to $104.39 vs. the 52-week range of $65.40 to $147.91. Short interest on ANF stands at 11.5% of the total float.