Abercrombie & Fitch Shares Drop After Sales Outlook

Abercrombie & Fitch's shares experienced a significant decline of nearly 19% despite the company raising its fourth-quarter sales growth outlook to 7-8%, up from a previous estimate of 5-7%. This downturn is attributed to investor skepticism regarding the sustainability of the retailer’s growth momentum, as analysts had anticipated slightly higher growth figures. The stock's drop reflects broader concerns in the retail sector, with other fashion retailers like American Eagle and Urban Outfitters also seeing declines despite positive sales reports. Chief Executive Fran Horowitz reassured investors about the brand's ongoing momentum and focus on expanding its consumer base through new store openings. However, some analysts noted that the revised sales growth target may not meet market expectations, leading to caution among investors. Overall, the retail environment remains challenging, with other retailers like Macy's also adjusting their sales forecasts downward.