From NASDAQ: 2025-06-01 23:26:00

Abercrombie & Fitch (NYSE: ANF) exceeded Q1 earnings expectations, boosting shares by 15% on May 28. However, stock dropped to $83 on May 29, 44% below its year-to-date peak. Despite strong operational performance, revised guidance for FY 2025 led to investor caution.

ANF stock has doubled in the past three years, driven by a 155% surge in earnings per share. Q1 FY25 saw EPS of $1.59 on $1.10 billion revenue, beating expectations. The stock’s P/E ratio fell to 8x, signaling investor concern over sustainability and external risks.

Abercrombie brand’s comeback was successful due to store revamps, digital growth, and global expansion. Hollister also showed strength with sales rising 22%. However, Q1 results were mixed, with Abercrombie brand sales declining 4%.

ANF’s full-year guidance was revised downwards, with EPS expected between $9.50 and $10.50 and operating margins cut to 12.5%–13.5%. $50 million in tariff costs are expected to impact margins. The company forecasts 3%–6% net sales growth in 2025.

ANF’s stock history has been volatile, with significant swings in recent years. With a P/E ratio at 8x and solid earnings power, the stock may offer upside potential if management navigates headwinds effectively.

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Read more at NASDAQ: What’s Happening With Abercrombie & Fitch Stock?