Abercrombie & Fitch shares fell 16% in premarket trading after the company trimmed its full-year net sales growth forecast to “at least 6%,” down from a prior range of 6%–7%. The sharp market reaction came despite the adjustment amounting to a modest 100 basis points at the top end of the outlook, following the retailer’s best two-month gain in 25 years. Investors appeared particularly sensitive to any downward revisions after the stock had rallied strongly through November and December.

In its January 12 update, ANF reported record quarter-to-date net sales through fiscal December, driven by balanced growth across regions and channels. Hollister Brands delivered mid-teens net sales growth and Abercrombie Brands posted low single-digit gains in the fourth quarter despite tough comparisons to last year’s record seasonal results. Management narrowed fourth-quarter net sales guidance to around 5% growth (previously 4%–6%) and maintained operating margin expectations at approximately 14%.

The company now anticipates full-year net sales growth of at least 6%, operating margins around 13% and diluted EPS of $10.30–$10.40, compared with a prior EPS range of $10.20–$10.50. Capital expenditures are expected to rise to about $245 million, up from $225 million previously, funding 60 new store openings, 20 closures and approximately 40 remodels. ANF plans share repurchases of around $450 million and assumes $90 million of tariff expense in the outlook.

Fran Horowitz emphasized that the company remains “on offense” across product, voice and experience, citing investments in marketing, digital and stores to strengthen the foundation for long-term growth. She noted plans to leverage the omnichannel operating model and pursue new go-to-market partnerships to reach customers worldwide, while sustaining top-tier profitability and navigating trade policy headwinds through mitigation efforts.