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Abercrombie & Fitch Stock Plunges as Outlook Underwhelms

1. ANF shares fell 12% after disappointing profit forecasts. 2. Q1 EPS forecast between $1.25 and $1.45, below expectations. 3. Fiscal 2025 sales growth forecast of 3-5%, lower than estimates. 4. Q4 results exceeded estimates with $3.57 EPS and $1.58 billion sales. 5. Shares are down 40% over the past year, reaching lows since December 2023.

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FAQ

Why Very Bearish?

The significant drop in share price reflects poor earnings forecasts, similar to past declines during disappointing earnings reports.

How important is it?

Disappointing earnings and forecasts can significantly influence investor sentiment and stock value.

Why Short Term?

Immediate market reactions to poor forecasts often indicate ongoing volatility in stock price.

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