Why Abercrombie & Fitch Stock Plunged Today
Shares of apparel retailer Abercrombie Fitch (NYSE: ANF) plunged on Wednesday after it reported financial results for the fourth quarter of 2024. As of noon ET, Abercrombie stock was down 14% for the day and down nearly 60% from its 52-week high.
Abercrombie just reported full-year net sales of $4.95 billion, which was up 16% year over year and hit a company record. Moreover, the company's full-year operating margin of 15% was its best showing in more than a decade. Therefore, it's surprising the stock is down nearly 60% from highs with numbers like these.
Investors are negatively reacting not to the 2024 numbers, but rather to Abercrombie's guidance for 2025. Net sales in 2025 are only expected to increase by 3% to 5% compared to 2024. And its operating margin is expected to drop to 14%-15%, accounting for some uncertainty regarding trade tariffs.
Source Fool.com
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