Latest news with #Abercrombie&Fitch
Time of India
3 days ago
- Business
- Time of India
American Eagle Outfitters reports bigger-than-expected loss, forecasts downbeat revenue
HighlightsAmerican Eagle Outfitters reported a wider-than-expected quarterly loss, leading to an 8% decline in shares, as rising input costs and sluggish demand impact their revenue forecast. The company expects second-quarter revenue to decline by 5%, exceeding analysts' estimates of a 4.04% drop, amid consumer financial constraints affecting non-essential purchases. Despite American Eagle Outfitters' struggles, Abercrombie & Fitch reported positive results, driven by strong demand for its Hollister brand among younger shoppers. American Eagle Outfitters forecast second-quarter revenue below estimates after reporting a wider-than-expected quarterly loss on Thursday, due to rising input costs and sluggish demand. Shares of the company, which withdrew its fiscal 2025 forecasts earlier this month amid tariff uncertainty, fell about 8% after the bell. Consumers grappling with financial constraints are avoiding non-essential purchases, including apparel and accessories, which in turn has hurt demand for clothing brands such as American Eagle Outfitters. Comparable sales in the company's American Eagle brand declined 2%, while those for its Aerie brand dropped 4%, compared to a year ago. Meanwhile, fears of a surge in product prices, sparked by U.S. President Trump's unpredictable tariff shifts, have rattled businesses and consumers worldwide. Peer Abercrombie & Fitch, however, reported an upbeat quarter, driven by robust demand for its Hollister brand among younger shoppers. American Eagle Outfitters now expects second-quarter revenue to decline by 5%, compared with analysts' estimates of a 4.04% drop, according to data compiled by LSEG. Total inventory as of the quarter ended May 3 fell 5% to $645 million, with unit numbers also down 5%. The owner of the Aerie brand, which took a $75 million inventory charge on its spring and summer collection, saw further margin pressure from increased in-season discounts and advertising expenses. Its quarterly gross margin dropped to 29.6% from 40.6% a year ago. The company reported a quarterly adjusted loss of 29 cents per share, versus analysts' estimates of a loss of 22 cents per share.
CNBC
3 days ago
- Business
- CNBC
Jim Cramer on Abercrombie and American Eagle earnings: Limit downside on teen retailers
CNBC's Jim Cramer on Friday reviewed recent earnings from teen-focused apparel makers Abercrombie & Fitch and American Eagle Outfitters. While he was more optimistic about the former, he was generally cautious on the group. "I want you to limit your downside with these teen retailers. You never know when a company like this may go from sink and swim to just plain sink, at least for the next quarter," he said. "But to me, Abercrombie — I think that's worth buying perhaps as soon as next week." According to Cramer, teenage consumers are "notoriously fickle," a dynamic that makes it hard to bet on stocks that rely on them. Retailers and consumer-oriented companies broadly have expressed worries about the economic impact of President Donald Trump's tariffs, as most manufacture abroad. Abercrombie & Fitch is down 47.49% year-to-date while American Eagle is down 34.25%. He was disappointed with American Eagle's quarter — the retailer missed on earnings, recording a $75 million write-down in spring and summer merchandise. The company also reduced its full-year guidance before the report because of macroeconomic uncertainty. Cramer said it was strange that American Eagle announced a $200 million buyback while business is weaker. Retailers need flexibility, he said, and American Eagle's buyback will give the company less flexibility. Abercrombie & Fitch managed to beat the estimates, but it cut guidance as it gears up to weather steep tariffs. However, Cramer expressed confidence in CEO Fran Horowitz, who has managed to overhaul the company and execute a substantial turnaround after the brand struggled for years, having previously garnered a reputation for exclusivity, toxicity and racism. He was impressed with the retailer's efforts to diversify its supply chain. He noted that its offshoot brand, Hollister, grew same stores sales while they declined for the namesake brand, which is targeted at slightly older crowd. If investors believe Hollister can keep up the momentum and the flagship brand can improve, Cramer said the stock could be bought. He also said a Monday JPMorgan event featuring top Abercrombie management could move the stock. "I don't usually recommend options here, but I can tell you that teens are so fickle that if I were to buy Abercrombie ahead of the talk at JP Morgan on Tuesday, I actually might even do it with deep in the money calls," Cramer said. Abercrombie & Fitch and American Eagle did not immediately respond to request for comment. Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
Yahoo
3 days ago
- Business
- Yahoo
Why Abercrombie & Fitch Stock Is Soaring This Week
Abercrombie reported another strong quarter despite tariff issues. The company was forced to lower guidance due to the levies, especially those imposed on China. The company believes the impact won't be as severe as some had feared. 10 stocks we like better than Abercrombie & Fitch › Shares of Abercrombie & Fitch (NYSE: ANF) are trading higher this week. The company's stock jumped 9.7% as of 2:15 p.m. ET. The move up comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq-100 were up 1.4% and 1.1%, respectively. The clothing retailer released its quarterly numbers on Wednesday, beating Wall Street targets at a time when other retailers are struggling. Abercrombie posted a strong quarter and set relatively optimistic guidance, even in the face of uncertainty around Trump's tariffs. The company delivered earnings per share (EPS) of $1.59 on sales of $1.10 billion for the quarter, beating consensus expectations of $1.39 on $1.07 billion in sales. Investors were pleased with the performance, willing to look past the company's downward adjustments to its forecast of earnings and margins for the full year. The company was projecting EPS between $10.40 and $11.40, but now expects between $9.50 and $10.50. Operating margins guidance was also cut, from 14%-15% to 12.5%-13.5%. While downgrades are rarely well received, they were less than many anticipated, given Trump's introduction of sweeping tariffs in April. CEO Fran Horowitz was pleased, telling investors the quarter beat "expectations and was supported by broad-based growth across our three regions," attributing the success primarily to the Hollister brand, which "led the performance with growth of 22%, achieving its best-ever first-quarter net sales." She also noted that sales growth for Abercrombie's core brand had slowed slightly, but is still in the double digits. Abercrombie has reinvented itself, no longer the controversial brand of the early 2000s. It continues to show strong, resilient growth at a time when many clothing retailers are struggling. I think it is a solid pick. Before you buy stock in Abercrombie & Fitch, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Abercrombie & Fitch wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Abercrombie & Fitch Stock Is Soaring This Week was originally published by The Motley Fool Sign in to access your portfolio
Graziadaily
3 days ago
- Entertainment
- Graziadaily
This Unexpected '90s Fashion Trend Is Back - And Better Than Ever
When it comes to fashion trends, it's no secret that what goes around comes around – and there's no better proof of that than the nineties and late noughties, home to some of the most coveted sartorial resurgences we're seeing today. From gingham and plaid skirts à la Rachel Green and Clueless , to the return of low-rise jeans, there's no shortage of vintage-style staples that blend nostalgia with contemporary style. One of the most romantic and playful resurgences? The babydoll dress. Once strictly reserved for nightwear, this loose-fitting silhouette has been endorsed by the likes of Sabrina Carpenter, as well as high fashion labels such as Emilia Wickstead, Chloé, and Loewe – the latter even showcasing mini babydoll dresses at the Spring/Summer 2025 runway shows. But we're not here to talk frocks – we're here to talk about the cropped, modern version: the babydoll top. And there's one in particular leading the charge on the high street: the Abercrombie & Fitch Sheer Babydoll Cami. 1. Abercrombie & Fitch, Sheer Babydoll Cami - Snake Print Shop the popular A&F cami that perfectly encapsulates the '90s. Much like any babydoll top (which typically features a peplum or shift hemline) the Abercrombie top has quickly become a fashion insider favourite, thanks to its on-trend silhouette and breezy wearability for the warmer months. Available in a range of designs and colour ways, including classic black and white, it's the snake print version that's truly flying off both the virtual and in-store shelves. Not only does it embrace the babydoll resurgence, but it also taps into another kitschy yet chic Y2K revival – snake print. While the see-through material of the babydoll top might suggest it's best suited for more glittering occasions, its versatility means it can easily be adapted for more casual off-duty styling. For daytime, consider layering a thin black cami underneath for extra coverage (although you might want to skip the layers altogether during the warmer months) and pair it with your favourite pair of jeans for a relaxed look. When it comes to the evening, simply ditch the cami and let the top shine on its own, styling it with the same trusted denim and elevating the outfit with a pair of kitten heels, perfect for date nights. Of course, with any trending staple, the high street offering seldom disappoints. While Abercrombie's selection has quickly gained traction among those looking to tap into the babydoll revival, there's no shortage of other gems to be found, from H&M to Nobody's Child to name a few. Shop the rest below - including the other Abercrombie & Fitch versions. 2. Abercrombie & Fitch, Babydoll Top - Black Lace Alternatively, opt for the chic black lace iteration for nights out. 3. Abercrombie & Fitch, Babydoll Top - White Lace Choose the white version for summer days out. 4. Nobody's Child, Blue Camille Cami Top From the Poppy Delevingne X Nobody's Child collection, shop a light blue babydoll top with lace detailing. 5. Second Female, Babydoll Top Price: £93 Available to shop from Anthropologie, this babydoll top will keep you cool during even the hottest days. 6. Damson Madder, Amaya Blouse Damson madder knows a thing or two about a viral blouse - and the Amaya is no exception. Image credit: @vivianeaudi and @viviannn_v Emma Richardson is a fashion commerce writer for Grazia. She covers shopping, lifestyle, celebs and anything trending .
Miami Herald
3 days ago
- Business
- Miami Herald
Abercrombie issues troubling warning as tariff threats loom
I was not expecting to end up in an Abercrombie & Fitch dressing room at 31 years old. But this past year, I was in the market for new jeans. Not just any jeans - the kind that actually fit my body without gapping at the waist or pooling at the ankle. I asked a few friends for recs, and to my surprise, the name that kept coming up was Abercrombie. Seriously? Like many millennials, I had sworn the brand off years ago. Back in high school, Abercrombie was all about overpowering cologne, shirtless greeters, and sizes that barely fit a mannequin. Related: Key Marshalls, TJ Maxx, and Dillard's partner bets big on USA So yeah, I wasn't expecting much. But after enough rave reviews - and some Instagram reels that caught my eye - I decided to check out one of their stores in person. The experience? Way better than I thought. With thoughtful sizing that actually works for curvy, petite women like me, I left the store with a new respect for the brand. Now, that same brand is bracing for a major financial hit. Abercrombie (ANF) has spent years rewriting its story - from logo-heavy teen trend to a more grown-up brand that actually fits real bodies. But no amount of retail glow-up can shield a company from international politics. This week, Abercrombie warned that tariffs could slash this year's profits by as much as $50 million, according to CNBC. The brand now expects annual earnings per share to fall to between $9.50 and $10.50, a drop from its earlier range of $10.40 to $11.40. And the reason isn't because sales are because sourcing is getting expensive. Related: Nike reverses course as weak sales raise alarm Instead of raising prices across the board, Abercrombie says it's working behind the scenes to reduce costs and diversify its manufacturing network. It's a smart move - one that underscores how even a brand firing on all cylinders can get sideswiped by unpredictable global forces. What's looming is bigger than just Abercrombie: if Trump's proposed tariffs go into effect, countries like Vietnam, Cambodia, and India - now Abercrombie's biggest trading partners - could face import duties nearing 50%. That's a huge potential shift for brands that rely on affordable global production. Abercrombie's first-quarter numbers suggest that customers are still on board. The company posted revenue of $1.10 billion - a record for the quarter - and saw strong performance from its Hollister division, which grew sales by 22%. But even a blowout quarter may not be enough to reassure investors. Investors are right to be nervous. Abercrombie's namesake brand took a hit this quarter, and the company is facing harder comps ahead. The wedding shop bump has faded. Winter inventory needed heavy discounting. And even if new launches like its vacation shop perform well, profit pressure isn't going away. The brand has proven it can evolve, but now it's entering a phase where it has to prove it can sustain the momentum. Sourcing costs, global trade tensions, and shifts in consumer spending could all chip away at the progress Abercrombie has made. The denim might fit better than ever. But the margins? Those may be under stress. Related: Marshalls, TJ Maxx, and HomeGoods all adding new stores The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
