Abercrombie & Fitch (ANF) Stock Drops After Projecting Slower 2026 Revenue Growth

Key Takeaways

• Fourth-quarter adjusted earnings per share reached $3.68, surpassing the $3.57 Wall Street consensus
• Revenue totaled $1.67 billion, meeting analyst projections; comp sales increased 1%
• Shares declined 2.3% during premarket hours Wednesday following the earnings announcement
• Year-to-date 2026 performance shows a 21% decline through Tuesday’s market close
• Company projects 3%–5% revenue expansion for full-year 2026, trailing 2025’s 6% pace

Abercrombie & Fitch exceeded fourth-quarter profit expectations but issued a conservative 2026 revenue outlook while warning of tariff pressures totaling 70 basis points, triggering a selloff.

The apparel retailer posted adjusted quarterly profits of $3.68 per share for its fourth fiscal quarter, beating the analyst consensus estimate of $3.57 compiled by FactSet.

Revenue landed at $1.67 billion, matching Street forecasts. Year-over-year comparable-store sales advanced 1%.

Abercrombie & Fitch Co., ANF

Even with the earnings beat, shares tumbled 2.3% in Wednesday’s premarket session. The negative market response wasn’t entirely unexpected — the stock has already shed 21% in 2026 through Tuesday after the company dialed back its Q4 guidance in January.

The primary concern for shareholders centers on forward momentum.

Revenue Growth Forecast Disappoints

For the full 2026 fiscal year, Abercrombie projects revenue growth in the 3% to 5% range. This represents a slowdown from the 6% expansion achieved in 2025, though it aligns closely with Wall Street’s 4.2% growth estimate.

Adjusted earnings per share for the year are anticipated to land between $10.20 and $11. The midpoint of approximately $10.60 exceeds the analyst consensus of $10.36, based on LSEG data.

While the profit outlook appears solid, it’s the revenue deceleration that’s pressuring shares.

Import Duties Create Additional Headwind

The retailer identified tariff costs as a factor embedded in its 2026 guidance. Abercrombie manufactures extensively in Vietnam, Indonesia, and Cambodia — nations previously facing higher U.S. import levies before the Supreme Court invalidated Trump’s expansive IEEPA tariff framework.

Following the court’s decision, a temporary 10% across-the-board tariff on imports remains in effect, with administration officials hinting at a potential increase to 15%.

Management disclosed it has incorporated a 70 basis point tariff-related margin impact into full-year projections.

The company noted its forecast excludes any possible refunds or reimbursements connected to the overturned duties — leaving room for potential upside, though not factored into current guidance.

While 70 basis points represents a manageable drag, it adds another obstacle alongside decelerating revenue expansion.

Abercrombie emphasized it is planning based on the present tariff landscape rather than making assumptions about future policy shifts.

The 21% year-to-date stock decline entering Wednesday’s report signals investor anxiety that the company’s recent growth trajectory may be moderating.

Though fourth-quarter adjusted earnings of $3.68 beat projections by $0.11 and the full-year earnings midpoint tops consensus, these positive data points couldn’t outweigh concerns about softer revenue momentum ahead.

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