Abercrombie & Fitch (NYSE:ANF) Shares Dip 16% Amid New US$1.3 Billion Share Repurchase Program

Abercrombie & Fitch (NYSE:ANF) recently reported notable earnings growth, with sales and net income figures for both the fourth quarter and full year showing substantial increases. Despite these positive financial results, the company's share price dropped 16.47% over the past week. This decline occurred amid the initiation of a new share repurchase program worth $1.3 billion and the expiration of the previous buyback plan. The broader market also faced volatility, with major indices like the S&P 500 declining 3.1% over the same period. These market trends could have exacerbated the pressure on Abercrombie & Fitch stock. Additionally, Federal Reserve Chair Jerome Powell's comments on the state of the U.S. economy and interest rates failed to inspire confidence in a market shaken by recent economic policies, potentially influencing ANF's stock movement.

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Over the past five years, Abercrombie & Fitch (NYSE:ANF) has experienced a very large total shareholder return of 662.68%, reflecting a successful period for the company. This is in contrast to more recent performance where it underperformed the US Specialty Retail industry and the broader US Market over the past year. The company reported remarkable earnings growth in 2025, with Q4 sales reaching US$1.58 billion and full-year sales increasing to US$4.95 billion. Another key factor in the company's long-term share performance has been its active share repurchase programs, with up to US$1.3 billion recently authorized on March 5, 2025.

Corporate developments such as executive changes in November 2024 and strategic partnerships have also played a role in ANF's performance. The new partnership with Myntra Jabong in December 2024 aims at expanding the brand's presence in India. Additionally, the inclusion in significant indices like the S&P 400 Consumer Discretionary and Russell 2000 as of July 2024 likely supported the stock's attractiveness to certain investors.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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