Abercrombie & Fitch Co has narrowed its revenue outlook for the fiscal fourth quarter and full year 2025 despite reporting a strong Christmas trading period, prompting a negative reaction from investors.
The US fashion retailer said it now expects net sales growth of around 5% in the fourth quarter, compared with its earlier guidance range of 4–6%. For the full fiscal year, the company revised its net sales growth forecast to at least 6%, slightly below its previous 6–7% projection. Its full-year operating margin is expected to be around 13%.
CEO Fran Horowitz said the company had delivered “record quarter-to-date net sales through fiscal December”, reflecting balanced performance across regions, brands and channels, with particularly strong results during the holiday season. She said Hollister Brands was positioned for mid-teens net sales growth, while Abercrombie Brands saw a strong customer response and expected low single-digit sales growth in the fourth quarter on top of the prior year’s record results.
The revised outlook factors in increased investments and tariff costs, with capital expenditures projected at about US $ 245 million, up from a prior estimate of US $ 225 million. The company also anticipates continued profitability, with net income per diluted share estimated at between US $ 10.30 and US $ 10.40 for the year.
Shares in Abercrombie & Fitch fell sharply following the guidance revision, with the stock experiencing its largest one-day decline in more than three years. The market response reflected investor expectations of stronger sales growth following robust holiday trading, leaving some analysts to reassess near-term prospects for the apparel group.
The company said it would continue to invest across marketing, digital and store initiatives to support long-term growth and expand its addressable markets globally, while maintaining share repurchase plans of approximately US $ 450 million.
