Why Abercrombie & Fitch Stock Plunged Today

Group 1 - Abercrombie & Fitch reported full-year net sales of $4.95 billion, a 16% year-over-year increase, marking a company record [2] - The company's full-year operating margin reached 15%, the best performance in over a decade [2] - Despite strong 2024 results, the stock price fell nearly 60% from its 52-week high due to disappointing guidance for 2025, with net sales expected to grow only 3% to 5% and operating margin projected to decline to 14%-15% [3] Group 2 - Investors are concerned about the potential decline in margins and growth rate after a record year, leading to a negative reaction in the stock price [3] - Abercrombie's management has approved a $1.3 billion stock buyback program, with plans to utilize $400 million in 2025, potentially reducing the outstanding share count by 10% [5] - The company is in a strong financial position, indicating that management is focused on leveraging the current stock price to benefit shareholders [6]