Abercrombie & Fitch's stock plummeted 8.54% during intraday trading on Wednesday, following the release of its quarterly earnings report and forward guidance.

The clothing retailer reported better-than-expected fourth quarter results, but investors reacted negatively to the company's outlook for the coming year. Abercrombie forecast muted annual sales growth and cited uncertainty from U.S. tariff policies as factors impacting its projections.

The company's guidance for fiscal 2026 sales growth of 3% to 5% represents a slowdown from the previous year's 6% growth, while first quarter expectations also fell short of analyst estimates. Additionally, Abercrombie noted that its outlook includes the estimated impact of 15% tariffs on imported goods, which is expected to pressure margins.