Abercrombie & Fitch Q1 2025 Earnings: ANF Report
- Shares of Abercrombie & Fitch (ANF) experienced a surge Wednesday, even after the apparel retailer adjusted its profit outlook downward, citing an anticipated $50 million impact from tariffs.
- The company now projects full-year earnings per share to fall between $9.50 and $10.50,a decrease from the previous estimate of $10.40 to $11.40.Though, first-quarter earnings per share came...
- Abercrombie also revised its operating margin forecast, now anticipating it to be between 12.5% and 13.5%,down from the earlier range of 14% to 15%.
Abercrombie & Fitch (ANF) shares surged following the Q1 2025 earnings report,despite a predicted profit dip due to tariffs.The company’s first-quarter results exceeded all expectations, with revenue reaching $1.10 billion, fueled by a strong performance from Hollister, which saw sales increase by a staggering 22%. Further, Abercrombie & Fitch raises full-year sales guidance, anticipating growth between 3% and 6%; this is great news for investors. CFO Robert Ball is actively working towards mitigating the impact of these tariffs by diversifying their sourcing plus other strategies. News Directory knows the apparel retailer aims to negate the $70 million tariff effect. Discover what’s next for ANF’s upcoming quarter and the steps toward long-term growth.
Abercrombie & Fitch Stock Soars Despite Tariff Impact on Profit
Shares of Abercrombie & Fitch (ANF) experienced a surge Wednesday, even after the apparel retailer adjusted its profit outlook downward, citing an anticipated $50 million impact from tariffs. Despite this headwind, strong first-quarter results and an optimistic sales forecast fueled investor confidence.
The company now projects full-year earnings per share to fall between $9.50 and $10.50,a decrease from the previous estimate of $10.40 to $11.40.Though, first-quarter earnings per share came in at $1.59, surpassing analysts’ expectations of $1.39. Revenue also exceeded forecasts, reaching $1.10 billion against an expected $1.07 billion.
Abercrombie also revised its operating margin forecast, now anticipating it to be between 12.5% and 13.5%,down from the earlier range of 14% to 15%. This adjustment reflects the impact of tariffs currently in effect,including a 30% tariff on imports from China and a 10% levy on goods from numerous other countries.
Despite these challenges, Abercrombie & Fitch raised its full-year sales guidance, now projecting revenue growth between 3% and 6%, compared to the previous range of 3% to 5%. This positive outlook is largely ahead of analysts’ expectations of 3.3% growth.
CEO Fran Horowitz highlighted the company’s strong performance in the first quarter. “This was above our expectations and was supported by broad-based growth across our three regions,” Horowitz said. “Hollister brands led the performance with growth of 22%, achieving its best ever first quarter net sales, while Abercrombie brands net sales were down 4% against 31% sales growth in 2024.”
Chief Financial Officer Robert Ball noted that abercrombie is actively working to mitigate the impact of tariffs. The company expects a $70 million hit, but aims to reduce it to $50 million thru various strategies. These include collaborating with vendors to offset costs and diversifying its sourcing network.
“The more diversified we get, the faster that we can be,” Ball told CNBC. “We’re looking for expense reductions …across the business, but we’re doing that with a very clear eye to protecting long-term investments for the business, as we just see a ton of possibility for these brands globally and longer term.So it’s a very cautious approach.”
What’s next
Looking ahead, Abercrombie anticipates sales for the current quarter to increase between 3% and 5%. The company expects the Abercrombie brand to return to growth in the latter half of the year, driven by initiatives like the vacation shop and a renewed focus on swim apparel.