Iconic fashion label Abercrombie & Fitch is losing its hot growth streak

New York: US fashion brand Abercrombie & Fitch Co. is struggling to meet investors' lofty expectations.

The retailer said revenue this year would grow 3% to 5%. Wall Street projected an average of $5.2 billion in annual sales, which would be a gain of about 5.5%.

Abercrombie has been on hot streak the past two years, with its sales and stock surging. The chain nailed its fashion, helping it expand beyond teens to capture more young adults. Now investors are looking to see if it can keep it up.

Shares of the company fell as much as 15% in New York. The stock had declined 36% this year through Tuesday.

Abercrombie reported amid confusion over President Donald Trump's tariffs. New levies took effect this week, but the White House may be pulling back from them.

Retailers such as Target Corp. and Best Buy Co. warned that prices may increase because of the levies. Abercrombie said tariffs enacted last month were taken into account in its guidance for operating margin.

Last quarter, Abercrombie's revenue topped analysts' expectations on the strength of its Hollister brand, which boosted same-store sales 24%, topping estimates. But the company's namesake banner trailed projections with 5% growth.