Abercrombie & Fitch Co. ( ANF ) announced on Monday that it has tightened its fiscal 2025 outlook, narrowing its annual sales growth forecast, despite reporting record quarter-to-date net sales through December.

The retailer now expects full-year net sales growth of at least 6%, down from its prior forecast of 6%–7%, a more cautious stance that sent the stock sharply lower.

The retailer expects a full-year operating margin of approximately 13%. Additionally, it forecasts fourth-quarter revenue growth of around 5% and an operating margin of nearly 14%.

Management guided to full-year diluted EPS of $10.30 to $10.40 and fourth-quarter EPS of $3.50 to $3.60, reflecting confidence in demand trends despite a challenging comparison.

That update follows a solid third quarter, during which the company exceeded expectations and raised its prior fiscal 2025 sales guidance to 6%–7% (from 5%–7% previously). Abercrombie posted adjusted EPS of $2.36 on $1.29 billion in revenue, driven by strength in the Americas and EMEA regions, helping reinforce management's view that fiscal 2025 will mark another record year.

Capital allocation remains a priority. The company reaffirmed its plans to repurchase approximately $450 million of shares during fiscal 2025, including roughly $100 million in the fourth quarter, and increased its expected capital expenditures to approximately $245 million to support investments in digital, marketing, and store operations.

The updated full-year outlook includes an estimated $90 million in tariff-related costs, net of mitigation efforts, equivalent to approximately 170 basis points of net sales.

CEO Fran Horowitz said the Hollister brand is on track for mid-teens net sales growth in fiscal 2025, while the Abercrombie brand is expected to post low single-digit growth in the fourth quarter, lapping a strong prior-year result.

The company is scheduled to meet with investors and analysts at the ICR Conference on Jan. 12–13, 2026, where it is expected to further discuss its outlook and long-term strategy.

ANF Price Action: Abercrombie & Fitch ( ANF ) shares were down 16.53% at $104.23 at the time of publication on Monday, according to Benzinga Pro data.