MW Abercrombie & Fitch forecasts cautious 3% to 5% sales growth in 2025

By Steve Gelsi

Retailer's stock falls as it warns it may fall short of Wall Street's 2025 profit estimate

Abercrombie & Fitch Co.'s stock was down 6.5% in premarket trading on Tuesday after the retailer said it expects its 2025 sales to increase by 3% to 5%, below the analyst expectation for 5.5% growth.

Abercrombie & Fitch $(ANF)$ also said it expects 2025 earnings of $10.40 share to $11.40 a share, while analysts are looking for earnings of $11.28 a share, according to FactSet data.

For the fourth quarter, the New Albany, Ohio-based company's earnings of $3.57 a share beat the FactSet consensus estimate of $3.54 a share.

Fourth-quarter revenue rose 9% to just under $1.59 billion, ahead of the analyst estimate of $1.57 billion.

For full-year 2024, revenue rose 16% to $4.95 billion. If it increases by 3% over that dollar figure in 2025, Abercrombie & Fitch's revenue this coming year will be about $5.1 billion, below the analyst estimate of $5.2 billion.

If revenue increases by 5% in 2025, Abercrombie's full-year 2025 revenue will be $5.198 billion, a little below the $5.2 billion analyst estimate.

Abercrombie & Fitch Chief Executive Fran Horowitz said the company's full-year 2025 results topped its forecasts with 16% annual revenue growth, while its operating margins increased to 15%.

"Our collective effort and focus produced results well beyond our initial expectations," Horowitz said in a prepared statement.

Separately, Abercrombie & Fitch approved a $1.3 billion share repurchase program including $400 million in 2025.

Ahead of Wednesday's moves, Abercrombie & Fitch's stock had fallen 35.7% in 2025, while the S&P 500 SPX is down by 1.8%.

-Steve Gelsi

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March 05, 2025 08:14 ET (13:14 GMT)

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