Abercrombie & Fitch stock tumbled Monday after the retailer's updated outlook failed to impress analysts. Meanwhile, Urban Outfitters reversed after reporting record holiday sales. American Eagle also fell despite boosting its Q4 outlook.
"Through fiscal December, we delivered record quarter-to-date net sales, exceeding the expectations we provided in November," Abercrombie & Fitch CEO Fran Horowitz said in the news release. "Following an expected two years of double-digit top and bottom-line growth, I am as confident as ever in the power of our brands and operating model as we move forward."
Abercrombie & Fitch now sees Q4 net sales rising 7%-8%, up from its previous range of 5%-7% growth. The retailer lifted its full-year sales growth outlook slightly to 15%, from its prior guidance for 14%- 15%. Abercrombie maintained its operating margin and tax rate outlooks for Q4 and the year.
However, the increased targets were only enough to match previous forecasts by analysts. FactSet expects Q4 sales to increase 7.5%, while full-year revenue grows 15.2%.
Abercrombie & Fitch stock tumbled 15.7% Monday, gapping below all its moving averages.
ANF stock rallied about 69% in 2024. Shares hit a record high of 196.99 in late May.
Urban Outfitters
Elsewhere, Urban Outfitters on Monday reported record holiday sales for the two months ending in December.
Total company revenue increased 10% for the period. Retail sales rose 7%, with overall comparable sales climbing 6%.
The company's Anthropologie brand saw comparable sales increase 10%, followed by 9% growth at Free People. Urban Outfitters comparable sales declined 4%. Nuuly, Urban's rental clothing business, saw net sales increase 55% during the period, driven by a 53% jump in average subscribers.
Meanwhile, Urban Outfitters reported wholesale net sales jumped 29% for the holiday season.
For the 11 months ending Dec. 31, Urban saw total company sales increase 7%, driven by a 5% increase in retail sales. Comparable store retail sales rose 3% for the period.
Urban noted mid-single-digit growth in its digital channel sales and low single-digit growth in retail store sales. Nuuly for the 11-month period saw net sales jump 54%, from a 51% increase in average active subscribers. Net sales for Urban's wholesale segment increased 15%.
URBN stock slid 2% Monday after initially rising in premarket trade.
Urban Outfitters hit a record high of 59.05 from Jan. 7.
American Eagle
American Eagle reported that its Q4 comparable sales through Jan. 4 are up in the low single-digits and tracking ahead of its recent guidance for 1% growth. Trends across the company's American Eagle and Aerie brands were positive during the period.
"As a top destination for holiday shopping, we achieved record sales in December. We came to market with exciting new product assortments and engaging customer experiences, resulting in growth across brands and selling channels" CEO Jay Schottenstein said in the release.
As a result, American Eagle expects to deliver Q4 operating profit of $135 million, up from its previous forecast for $125 million to $130 million. The updated guidance assumes 2% comparable sales growth, building on the company's 8% increase from last year.
Still, the adverse retail calendar will result in a 5% decline in total revenue for the year, as American Eagle previously disclosed.
AEO stock fell 4.6% Monday, hitting its lowest levels since September 2023.
Shares have been in a downtrend since April 2024.
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