Abercrombie & Fitch (ANF) saw its shares plummet on Wednesday after CEO Fran Horowitz expressed concerns about the impact of an uncertain economy on the retail market. Despite beating profit and sales estimates for the second quarter, the company's stock tumbled 17% in early-afternoon trading.

In the company's second quarter financial release, Horowitz acknowledged that Abercrombie continues to operate in an increasingly uncertain environment. This remark overshadowed an otherwise strong report, as the company posted adjusted earnings per share of $2.50, exceeding analysts' expectations. Additionally, the company's revenue reached a second-quarter record of $1.13 billion, representing a 21% increase, while comparable store sales rose by an impressive 18%.

Both Abercrombie and its subsidiary Hollister experienced notable growth in sales figures. Total sales at Abercrombie stores rose by 26% to $582.4 million, while Hollister locations saw a 17% increase to $551.6 million. Both numbers surpassed initial forecasts.

Given the strong performance, Abercrombie raised its full-year sales growth guidance from 10% to a range of 12% to 13%. However, despite these positive outcomes, the company's shares took a hit. Analysts speculate that the stock selloff may be driven by excessively high expectations for the firm, which had been experiencing substantial gains in recent months. Though the shares hit all-time highs in both May and June, they have since retreated while remaining over 50% higher year-to-date.

Abercrombie & Fitch's CEO's cautionary remarks about the current economic climate serve as a reminder that even successful companies are not immune to the unpredictability of the market. As uncertainties loom, the retail industry will continue to face challenges, and businesses must navigate through these unsteady conditions to sustain growth and profitability.