The stock of U.S. retailer Abercrombie & Fitch (ANF) fell 16% after the company provided updated financial guidance that fell short of Wall Street’s expectations.
The Ohio-based company said in a news release that it expects its year-end holiday quarter to be only slightly better than previously anticipated.
Abercrombie raised its sales growth outlook to a range of 7% to 8%, which was only a little ahead of the top end of previous guidance that called for 5% to 7% growth.
The clothing retailer added that it now expects full-year sales growth of 15%. It previously forecast sales to grow 14% to 15% for all of 2024.
The revised guidance is also lower than in 2023, when the company’s sales grew 21% year-over-year.
The soft guidance comes after Abercrombie & Fitch’s sales rose significantly over the past two years, giving the company tough year-over-year comparisons to beat.
In a news release, Abercrombie & Fitch said that the company plans to focus more on boosting profits than sales going forward.
Abercrombie & Fitch’s stock has been a standout among retailers. Even with the 16% decline, the stock is up 37% over the last 12 months and has risen nearly 300% in the past three years.
ANF stock currently trades at $135.72 U.S. per share.