Abercrombie Shares Drop as Holiday Season Disappoints Mall Retailers

Abercrombie & Fitch Shares Drop After Holiday Sales Miss Expectations

Photographer: Shelby Knowles/Bloomberg

Abercrombie & Fitch Co. experienced a sharp decline in its stock price following holiday sales figures that failed to meet investor hopes, triggering a broader downturn among retail stocks.

The retailer, headquartered in New Albany, Ohio, maintained its previous guidance and now anticipates fourth-quarter revenue to rise by about 5%, which is the midpoint of its earlier forecast.

Top Stories from Bloomberg

This announcement comes just before the ICR Conference in Orlando. Other retailers based in shopping malls, such as American Eagle Outfitters Inc. and Urban Outfitters Inc., also reported holiday results that did not impress investors.

Throughout much of the previous year, U.S. retailers outperformed expectations as consumers continued to spend despite inflation and economic uncertainty. However, that optimism now appears to be waning.

Stock Performance

Abercrombie’s stock had surged by 90% since its strong third-quarter report in November, but shares tumbled 18% on Monday. American Eagle and Urban Outfitters also saw their stock prices fall.

Teen-focused brands were seen as major beneficiaries during Black Friday, as shoppers prioritized style and value. Hollister attracted a younger crowd with campaigns like its Cyber Monday partnership with Taco Bell, which embraced Y2K nostalgia.

Two months ago, Abercrombie raised the lower end of its annual outlook, buoyed by robust back-to-school sales. Although the company described holiday sales at both Hollister and Abercrombie as “strong,” the latest update indicates that growth is slowing after several years of momentum.

According to Bloomberg Intelligence analyst Mary Ross Gilbert, Abercrombie’s main brand was expected to gain from “on-trend product launches, streamlined inventory, premium pricing, and bold marketing strategies.”

Lululemon Athletica Inc. stood out as a positive exception, forecasting fourth-quarter sales at the upper end of its guidance. However, the stock’s early gains faded, leaving it largely unchanged.

The athletic apparel retailer faces increased scrutiny as competition intensifies and its results soften. The company’s CEO is also set to depart, following pressure from founder Chip Wilson and Elliott Investment Management.

Most Popular from Bloomberg Businessweek

©2026 Bloomberg L.P.