Abercrombie surges on raised outlook after tallying tariff cost
Abercrombie & Fitch Co. shares rose sharply in premarket trading Wednesday after the retailer upped its full-year outlook, suggesting the retailer is confident in its ability to navigate the changing tariff landscape.
The fashion retailer now sees full-year net sales growth of 3% to 6%, up from its estimate of 3% to 5% in March. This includes approximately $50 million of tariff expenses.
Comparable sales for the Abercrombie namesake brand fell 10% in the quarter ending May 3, a bigger drop than analysts were anticipating, the New Albany, Ohio-based company said. Hollister brand comparable sales were up 23%, far surpassing expectations.
While Abercrombie's fashion mix has drawn in a broader audience and increased sales in recent quarters under Chief Executive Officer Fran Horowitz, the company now faces uncertainty due to the Trump administration's shifting tariff policies.
Chinese goods had faced tariffs of as much as 145% until President Donald Trump paused the hike earlier this month. But Abercrombie has been reducing its exposure to China in recent years, with its imports representing 7% of the total cost of merchandise receipts in fiscal 2024, down from 13% two years earlier. Vietnam is the retailer's top vendor, followed by Cambodia and India.
Abercrombie shares gained as much as 33% in premarket trading in New York on Wednesday. Year to date, the stock had fallen 48% through Tuesday's close as the S&P 500 Index gained 0.7%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
4 hours ago
- Euronews
These UK scientists are ‘growing colour' using nature's DNA codes
From the vivid red of a parrot's feather to the dreamy blues and purples of Indigo plants, nature is a riot of colour. It has a spectrum to satisfy even the most fashion-forward of humans, so what if there were a way to naturally copy all of these hues? That's precisely what UK-based company Colorifix is working on: a fabric-dyeing process that uses the DNA codes for colours found in nature and teaches microbes to recreate them. Founders Orr Yarkoni and Jim Ajioka were motivated by a research trip to Nepal in 2013, where they saw the toxic impact of chemically synthesised dyes on Kathmandu's rivers. A decade later, Colorfix won recognition as a 2023 finalist for The Earthshot Prize - the global environmental award created by Britain's Prince William. We caught up with the company to find out more about the waste-cutting solution and what they've achieved since stepping into the global spotlight. Before the 19th century, fabric dyes were derived from natural plants and crops, and colourful clothing was considered a luxury. Colorifix is 'bringing the fashion industry back to its roots', in the words of CEO Yarkoni - but with a 21st century set of tools to unlock new pigments. It begins by identifying an interesting colour created naturally by an animal, plant or microbe. By searching public databases, scientists find the 'instructions' for making that colour in the organism's DNA code. They then insert that code into bioengineered microbes like yeast, which are fed with sugar and nitrogen in bioreactors, similar to the way beer is brewed. Over time, these 'microscopic colour factories' can create hundreds to thousands of litres of dye. Finally, the contents of the fermentor are pumped into standard dye machines along with the yarn, fabric, or garment to be dyed. 'Support from The Earthshot Prize not only validates the impact of our solution but also connects us with the network needed for this crucial next phase,' says Andreas Andren, head of business development at Colorifix. Finalists - there are 15 each year, across five categories - join the Prize's 12-month accelerator programme, which includes connections to investors and help to overcome hurdles. 'Biotech is great, but overall expensive to run and scale,' explains Andren. 'Part of the innovation we had to put into play was hardware to make biotechnology scaling competitive with commodity chemical manufacturing. 'Having to solve that problem on top of developing our core technology - the actual dyeing - was definitely the biggest challenge.' Colorfix's solution makes for an interesting intellectual property (IP) case. Patenting organisms that have been recreated using DNA technology is tricky, so the company has instead patented its process of producing, depositing and fixing dye on fabric. 'To reap all the benefits of our technology, such as flexibility and cost parity, a dye house will need to install our proprietary bioreactors on-site,' Andren says. Is the company coming up against incumbents in the industry? 'We are getting more attention from synthetic chemical manufacturers,' he says. 'Some good, some not so good; but the fact that they are starting to pay attention is definitely a sign we are on the right track.' Colorifix has operational capacity in Europe and South America - spread out across several manufacturers - and is aiming to be operational in South Asia within a year. It has partnered with fashion brands like Pangaia and Vollebak to bring products dyed with its technology to market and start increasing demand for sustainable dyes throughout the supply chain. There are other 'big names in the pipeline,' says Andren - but the company is keeping its cards close to its chest for now. The same goes for the new colours it is cooking up. However, he reveals, they successfully dyed greens and oranges during the first part of the year. And the team are extending their application to new materials, including Spiber, made of spider silk protein, and Circulose, an alternative cellulose pulp. New colours will join Colorifix's primary palette of three pigments: one detected in Indigo plants; another, Blushing Rose, made by underwater bacteria; and a third bacteria-born pigment found in soil and deep-sea sediments, named Sunlit Sand. Colouring our clothes with these natural dyes would represent huge progress for an industry that is currently polluting and colouring nature - like Tanzania's Msimbazi River - with chemicals. Colorifix's natural dyes cut chemical pollution by 80 per cent and, when applied to fabrics, they require far fewer rinses than synthetic dyes, ultimately saving vast quantities of water. Tajikistan is home to nearly 14,000 glaciers, but more than a thousand have already disappeared. The country has the largest number of glaciers in Central Asia and sits at the epicentre of regional glacier melt. As the impact grows, Tajikistan is leading the call for action and bringing the issue to the global stage. On the side-lines of the first high-level International Conference on Glaciers' Preservation in Dushanbe, Tajikistan's President Emomali Rahmon proposed launching a major study of the country's glaciers and creating a regional research lab. He also suggested focusing research efforts on the Vanch Yakh Glacier, formerly known as Fedchenko. It is the world's largest continental glacier and has already retreated by more than one kilometre over the past 80 years. "Considering the fact that more than 60% of the region's glaciers are located in Tajikistan, I propose, in collaboration with development partners and research institutes, to organise a comprehensive expedition to study the glaciers of Tajikistan and establish a regional laboratory for glacier research," the president said. The International Conference on Glaciers' Preservation gathered more than 2,000 people from more than 80 countries. Among the high-profile guests were UN Deputy Secretary-General Amina Mohammed, Iran's First Vice President Mohammed Reza Arif, Pakistan's Prime Minister Muhammad Shabaz Sharif and other international leaders. The event marks an important step toward putting the UN's 2025 International Year of Glacier Preservation into action.
France 24
7 hours ago
- France 24
Gay Chinese couple fulfil wedding dream in 'freer' Thailand
"I thought he was handsome and pure," says Wang. "Our love has deepened over time." Nearly three years later, the gay Chinese couple are getting married in Thailand, which became Asia's largest nation to legalise same-sex marriage earlier this year -– including for foreign couples. They are among the first Chinese LGBTQ pairs to tie the knot in the Southeast Asian country as it celebrates its first Pride since the law's passage. "Thailand is a freer country," said Wang after they signed their marriage certificate at a Bangkok registry office. "It's also more inclusive to our community." He believes they are the first gay Chinese couple to host a full wedding ceremony in Thailand, but that "gradually" more will follow in their footsteps. "I think we are unique so far... but I hope we can have a positive influence." They enlisted the help of an agent and a consultant to organise the wedding and paperwork to finally make their dream come true. Bureaucratic hurdles Chinese authorities decriminalised homosexuality in 1997, but same-sex marriage is not legal and social stigma is widespread. Despite a period of relative relaxation in the 2000s to mid-2010s, rights groups say recent years have seen a crackdown on the community's spaces and freedom of expression. Real estate agent Owen Zhu has a property business in Thailand that also helps gay Chinese couples come to Thailand to get married. Zhu, 40, said that the biggest difficulties couples like Wang and Song face are linked to paperwork, as well as prejudice. It is difficult for Chinese LGBTQ individuals to obtain the certificate of single status required by Thailand proving that they are not married, he told AFP. China also does not recognise same-sex marriages registered abroad. But Zhu believes that despite China's bureaucratic hurdles, there will be a rise in the number of Chinese couples looking to wed and even live long-term in Thailand. "There is large market demand from many Chinese same-sex couples," he says. "Thailand is a particularly tempting place, allowing freedom to do things not possible in China, like holding hands or kissing in public with a partner. In China, they may not dare do such things." Zhu says the simple act of signing a marriage document is deeply meaningful for his clients. "Though this piece of paper might not be recognised in China, in their hearts, they see it as recognition and acceptance from the world," he says. Love ballads, vows More than 30 countries have legalised marriage for all since the Netherlands became the first to allow same-sex unions in 2001. Thailand was the third place in Asia after Taiwan and Nepal. The kingdom ranks high on recent indexes measuring public attitudes towards LGBTQ people, but matching legal structures were absent before it passed the same-sex marriage bill in a historic parliamentary vote last June. Thousands of couples across the kingdom tied the knot in a mass wedding the day same-sex unions became legal in January this year. Chris Yan, a legal consultant who helped Wang and Song navigate Thai administration to formalise their partnership, says the process for foreigners to register their marriage in Thailand is fairly smooth as long as they can provide the necessary documents. "I believe it is more advanced than many other countries, since the cost in Thailand is quite low," he says. "They can stay in the country for longer and processing the documents is quicker." Surrounded by dozens of close friends and their ring-bearing small fluffy dog, Wang and Song sing love ballads to each other on a sandy Pattaya beach before tearfully reading their wedding vows. They will return home to China after their honeymoon, but hope to eventually retire in Thailand. Life is short, is the message they have for other couples like them. Wang said: "Be with the one you want to be with." © 2025 AFP
France 24
11 hours ago
- France 24
Silicon Valley VCs navigate uncertain AI future
The generative AI frenzy unleashed by ChatGPT in 2022 has propelled a handful of venture-backed companies to eye-watering valuations. Leading the pack is OpenAI, which raised $40 billion in its latest funding round at a $300 billion valuation -- unprecedented largesse in Silicon Valley's history. Other AI giants are following suit. Anthropic now commands a $61.5 billion valuation, while Elon Musk's xAI is reportedly in talks to raise $20 billion at a $120 billion price tag. The stakes have grown so high that even major venture capital firms -- the same ones that helped birth the internet revolution -- can no longer compete. Mostly, only the deepest pockets remain in the game: big tech companies, Japan's SoftBank, and Middle Eastern investment funds betting big on a post-fossil fuel future. "There's a really clear split between the haves and the have-nots," says Emily Zheng, senior analyst at PitchBook, told AFP at the Web Summit in Vancouver. "Even though the top-line figures are very high, it's not necessarily representative of venture overall, because there's just a few elite startups and a lot of them happen to be AI." Given Silicon Valley's confidence that AI represents an era-defining shift, venture capitalists face a crucial challenge: finding viable opportunities in an excruciatingly expensive market that is rife with disruption. Simon Wu of Cathay Innovation sees clear customer demand for AI improvements, even if most spending flows to the biggest players. "AI across the board, if you're selling a product that makes you more efficient, that's flying off the shelves," Wu explained. "People will find money to spend on OpenAI" and the big players. The real challenge, according to Andy McLoughlin, managing partner at San Francisco-based Uncork Capital, is determining "where the opportunities are against the mega platforms." "If you're OpenAI or Anthropic, the amount that you can do is huge. So where are the places that those companies cannot play?" Finding that answer isn't easy. In an industry where large language models behind ChatGPT, Claude and Google's Gemini seem to have limitless potential, everything moves at breakneck speed. AI giants including Google, Microsoft, and Amazon are releasing tools and products at a furious pace. ChatGPT and its rivals now handle search, translation, and coding all within one chatbot -- raising doubts among investors about what new ideas could possibly survive the competition. Generative AI has also democratized software development, allowing non-professionals to code new applications from simple prompts. This completely disrupts traditional startup organization models. "Every day I think, what am I going to wake up to today in terms of something that has changed or (was) announced geopolitically or within our world as tech investors," reflected Christine Tsai, founding partner and CEO at 500 Global. The 'moat' problem In Silicon Valley parlance, companies are struggling to find a "moat" -- that unique feature or breakthrough like Microsoft Windows in the 1990s or Google Search in the 2000s that's so successful it takes competitors years to catch up, if ever. When it comes to business software, AI is "shaking up the topology of what makes sense and what's investable," noted Brett Gibson, managing partner at Initialized Capital. The risks seem particularly acute given that generative AI's economics remain unproven. Even the biggest players see a very uncertain path to profitability given the massive sums involved. The huge valuations for OpenAI and others are causing "a lot of squinting of the eyes, with people wondering 'is this really going to replace labor costs'" at the levels needed to justify the investments, Wu observed. Despite AI's importance, "I think everyone's starting to see how this might fall short of the magical" even if its early days, he added. Still, only the rare contrarians believe generative AI isn't here to stay. In five years, "we won't be talking about AI the same way we're talking about it now, the same way we don't talk about mobile or cloud," predicted McLoughlin. "It'll become a fabric of how everything gets built." But who will be building remains an open question.
