From CNBC: 2025-05-28 11:54:00

Shares of Abercrombie & Fitch surged despite cutting profit outlook by $50 million due to tariffs. Full-year earnings per share now expected between $9.50 and $10.50. Operating margin forecast also lowered. Fiscal Q1 results beat expectations with $1.59 EPS and $1.10 billion revenue. Sales reached record high.

Abercrombie anticipates revenue will rise between 3% and 6% for the full year, slightly raising guidance. For current quarter, sales expected to rise between 3% and 5%. Operating margin expected between 12% and 13%, with EPS between $2.10 and $2.30. CFO expects $70 million hit from tariffs, but aims to mitigate costs.

Abercrombie sourced 30% of products from China before pandemic, now in low single digits. Biggest trading partners are Vietnam, Cambodia, and India. Tariffs lowered to 10% under Trump’s proposal. Weak guidance due to tariffs impact profits. Abercrombie’s namesake brand faces slowdown, but Hollister brand drives growth.



Read more at CNBC: Abercrombie & Fitch (ANF) Q1 2025 earnings