Shares of Abercrombie & Fitch (ANF) fell by 12% on Wednesday after the company’s forecasts for the current quarter’s profit and full-year sales failed to meet investor expectations. The apparel retailer, which operates Hollister alongside its namesake brand, anticipates first-quarter earnings per share (EPS) between $1.25 and $1.45. This range is notably lower than the Visible Alpha consensus estimate of $2.01, partly due to elevated inventory levels. CFO Robert Ball mentioned during an earnings call that the company is managing higher carryover inventory compared to the previous year, working through it amid colder temperatures in January and February. Additionally, Abercrombie & Fitch projects fiscal 2025 sales growth between 3% and 5%, falling short of Visible Alpha’s expected growth of 5.65%. Despite the underwhelming guidance, the retailer’s Q4 results exceeded estimates, with EPS at $3.57 and net sales increasing 9% year-over-year to $1.58 billion. — news from Investopedia
