Abercrombie & Fitch's stock experienced a sharp pre-market plunge of 5.26% on Wednesday, following the release of its fourth-quarter financial results and forward guidance.

The clothing retailer reported adjusted earnings of $3.68 per share for the fiscal fourth quarter, surpassing analysts' expectations of $3.57. Net sales of $1.67 billion were in line with Wall Street forecasts. However, investor sentiment turned negative due to the company's outlook for the coming year.

Abercrombie & Fitch forecast muted annual sales growth of 3% to 5% for fiscal 2026, a slowdown from the 6% growth achieved in 2025. The company also cited uncertainty from 15% U.S. tariffs on imported goods as a factor in its guidance, which assumes a tariff impact on sales. This combination of a tempered growth forecast and external cost pressures led to the pre-market sell-off.