Abercrombie & Fitch Shares Surge, But Lowers Outlook Despite Q1 Beat Due To Tariffs

Abercrombie & Fitch Company ANF shares are trading higher premarket on Wednesday after the retailer reported first-quarter adjusted EPS of $1.59, beating the street view of $1.40.

Quarterly sales of $1.1 billion outpaced the analyst consensus estimate of $1.08 billion.

The company reported net sales growth of 8% yearly (Y/Y), with comparable sales growth of 4% Y/Y.

Also Read: Abercrombie & Fitch Shares Slide As Tariff Concerns And Recession Fears Pressure Retail Sector: What’s Going On?

Abercrombie brand sales declined 4% year over year to $547.9 million. Hollister brand sales jumped 22% year over year to $549.4 million.

The company reported an operating income of $102 million, compared to $130 million last year. Operating margin as a percent of sales contracted to 9.3% from 12.7% last year.

Abercrombie CEO Fran Horowitz said the company remains “on offense and focused on top-line growth, store expansion, and investments in digital and technology that will enable sustainable long-term success.”

As of May 3, the company had:

• Cash and equivalents of $511 million
• Marketable securities of $97 million, and
• Inventories of $542 million.

Share Repurchase Authorization: The company bought back a $2.6 billion for approximately $200 million, with $1.1 billion remaining on the share repurchase authorization established in March 2025.

Outlook: The company expects second-quarter net sales growth in the range of 3% to 5% and EPS of $2.10-$2.30 vs consensus of $2.53.

Abercrombie & Fitch revised FY25 guidance for net sales growth to 3% to 6% (from 3% to 5% prior) and EPS to $9.50 to $10.50 (from $10.40 to $11.40) vs. street view of $10.75.

The guidance assumes existing U.S. import tariffs: 30% on Chinese goods and 10% on other global imports.

Despite mitigation efforts, the full-year outlook includes an estimated $50 million (100 basis points of net sales) in tariff expenses.

Price Action: ANF shares are up 25.3% at $96.68 premarket at the last check on Wednesday.

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