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Abercrombie stock drops 15% on weak growth forecast

Abercrombie & Fitch’s growth is slowing. The company issued weaker-than-expected guidance for the current quarter and fiscal 2025, leading to a 15% drop in its stock price. Sales are projected to grow between 3% and 5% in fiscal 2025, below analysts’ 6.8% estimate, with expected earnings per share falling short of forecasts. The slowdown is particularly pronounced at Abercrombie’s namesake brand, which saw only a 2% sales increase, compared to Hollister’s 16% growth. Despite a positive fiscal fourth-quarter performance, the company faces declining operating margins and consumer caution, with macroeconomic factors and geopolitical tensions dampening demand.

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