Consumer
Abercrombie’s 511% Rally Cools as Sales Growth Worries Mount
- Retailer posts worst week since August 2022 after earnings
- Its shares outperformed even Nvidia in 2023 as revenue climbed
An Abercrombie & Fitch store in New York.
Photographer: Stephanie Keith/BloombergThis article is for subscribers only.
A blistering rally in Abercrombie & Fitch Co. shares is losing steam as Wall Street frets over the retailer’s ability to keep delivering strong sales growth to justify its high valuation.
The stock, which bested even AI darling Nvidia Corp. last year, continued its ascent in 2024 until its fiscal fourth-quarter earnings report on Wednesday. After the retailer projected revenue growth would slow, shares abruptly reversed course. Abercrombie slumped for three days and posted its worst week since August 2022, falling 9.7%.