Abercrombie & Fitch (ANF) stock witnessed a sharp pre-market decline of 7.71% on Wednesday, following the company's disappointing annual sales growth forecast. The retailer expects its net sales to increase by only 3% to 5% for the year, falling short of market expectations of a 6.77% growth.

The lower-than-expected sales outlook from Abercrombie & Fitch reflects the ongoing weakness in consumer spending on higher-priced apparel. As consumer sentiment remains fragile, the company's ability to drive sales growth through premium pricing could be challenged.

Analysts have raised concerns over the impact of inflationary pressures and tighter consumer budgets on discretionary spending, particularly for non-essential items like higher-end clothing. Abercrombie & Fitch's guidance suggests that the company may need to offer more discounts or promotions to attract customers, potentially weighing on its profit margins.