Why Abercrombie and Fitch (ANF) Stock Is Down Today

Recent Developments at Abercrombie & Fitch

Shares of Abercrombie & Fitch (NYSE:ANF), a retailer focused on young adult fashion, experienced a sharp 19% decline during afternoon trading after the company adjusted its annual sales growth forecast downward and highlighted challenges from higher tariffs.

The company’s updated guidance, which now anticipates full-year net sales growth of at least 6%—down from the previous estimate of 6% to 7%—dampened the positive impact of its record-breaking holiday sales. This revised projection did not meet analysts’ optimistic expectations. Additionally, Abercrombie & Fitch warned of approximately $90 million in extra costs due to tariffs. The company also narrowed its operating margin outlook to 13%, representing the lower end of its earlier range, and raised its planned capital expenditures for the year to about $245 million. These factors combined to trigger a strong negative response from investors.

By the close of trading, the stock had fallen to $102.94, marking a 17.6% drop from the previous day’s close.

Market reactions can sometimes be exaggerated, and significant declines may create opportunities to invest in quality companies. Considering this, is Abercrombie & Fitch now a potential buy?

Market Sentiment and Stock Performance

Abercrombie & Fitch’s stock is known for its volatility, having experienced 32 swings greater than 5% over the past year. However, a drop of this magnitude is unusual even for this company, indicating that the latest news had a substantial effect on how investors view the business.

Just six days prior, the stock saw a 4.6% increase after Barclays analysts raised their price target, which contributed to a more optimistic outlook. Barclays lifted its target from $94 to $115, citing strong performance in the specialty retail sector driven by effective inventory management and favorable economic trends. The day before, Jefferies also raised its price target to $145 while maintaining a Buy rating, highlighting improvements in the brand’s perceived value and growing customer interest. Further supporting the positive sentiment, trading activity revealed that major investors were making bullish bets through options, signaling confidence in the company’s future.

Since the start of the year, Abercrombie & Fitch shares have declined by 17%. Currently trading at $102.68, the stock is 24.3% below its 52-week high of $135.72 reached in January 2025. Notably, an investment of $1,000 in Abercrombie & Fitch five years ago would now be valued at $4,414.

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