NEW YORK, Jan 13, 2026, 04:45 EST — Premarket
- Shares of Abercrombie & Fitch held steady in premarket, following a sharp 17.7% drop on Monday that pushed the stock down to $102.78.
- The retailer cut its full-year sales growth forecast while boosting its capital spending plan, citing tariff-related expenses.
- Investors await further insights from management at the ICR Conference, particularly on the impact of tariffs on margins.
Abercrombie & Fitch (ANF.N) held steady near $102.78 in premarket Tuesday, following a sharp 17.7% drop the previous day. The stock closed Monday at $102.78, with roughly 6.6 million shares exchanged, after the company trimmed some of its guidance. (Yahoo Finance)
This shift matters today because the update didn’t signal falling demand — it flagged tighter economics. A small cut to sales growth, weaker margin forecasts, and ramped-up spending can easily unsettle a retail stock riding high on expectations.
The news came as retailers gathered with investors at the ICR Conference, a time when companies frequently trim guidance and the market digs for clues about the holiday season’s true impact. Traders are focused on whether pricing will turn more promotional and if cost pressures, rather than sales, will dominate the narrative heading into 2026.
Abercrombie cut its fiscal 2025 net sales growth forecast to at least 6%, down from the previous 6% to 7% range, according to an 8-K filing. The company now anticipates an operating margin near 13%, slightly below the prior 13.0% to 13.5% estimate. It left its full-year share repurchase plan steady at about $450 million but raised capital spending to roughly $245 million. Full-year earnings guidance tightened to a range of $10.30 to $10.40 per share. For Q4, Abercrombie projects net sales growth around 5% and earnings between $3.50 and $3.60 per share. CEO Fran Horowitz noted the company posted “record quarter-to-date net sales through fiscal December.” The forecast factors in roughly $90 million in tariff costs, which equate to about 170 basis points (1.7 percentage points) of sales after mitigation. (SEC)
Sentiment across the sector leaned cautious. American Eagle and Urban Outfitters both signaled slower holiday-quarter sales. Consumer Edge analyst Michael Gunther noted the “theme of value-seeking behavior was on full display in this morning’s slew of retail pre-announcements,” reflecting investor concerns over full-price sales and inventory control. (Reuters)
Abercrombie’s story flipped quickly—from “how high can growth climb” to “how solid are the margins.” The sales adjustment was minor, yet the margin cut and a clear tariff line caught sellers’ attention.
Some investors are betting on a rebound after the single-day selloff. Others want to see evidence the company can maintain pricing power even as it ramps up spending on stores and digital, without costs outpacing demand.
The downside is straightforward: if promotions ramp up after the holidays or tariffs shift again, that margin buffer could shrink fast. A more volatile consumer environment would only make it tougher to compensate through volume.
Insights will hinge on what management reveals — and leaves unsaid — during investor sessions at the ICR Conference running through Tuesday. Focus centers on tariff mitigation efforts and whether Q4 momentum persisted into January. With the fiscal year closing Jan. 31, all eyes are on the last stretch of results and upcoming guidance.
