Abercrombie Shares Drop Despite Strong Holiday Sales

Abercrombie & Fitch Co. raised its fourth-quarter sales outlook on better-than-expected holiday sales, but the increase wasn’t enough to reassure investors the retailer could keep up the fast pace of growth.

Shares of Abercrombie were down 7.4 percent in Monday premarket trading in New York. The retailer’s shares soared 69 percent last year, compared with a 12 percent gain for the S&P Midcap 400 index.

The New Albany, Ohio-based retailer said it expected fourth-quarter net sales growth to…