Latest news with #Abercrombie&FitchCo.
Fashion Network
2 days ago
- Business
- Fashion Network
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%.
Fashion Network
2 days ago
- Business
- Fashion Network
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%.
Fashion Network
2 days ago
- Business
- Fashion Network
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%.
Fashion United
2 days ago
- Business
- Fashion United
Despite record sales in first quarter, Abercrombie & Fitch lowers profit forecast
The US clothing company Abercrombie & Fitch Co. was able to significantly increase its sales in the first quarter of the 2025/26 financial year, but had to accept a drop in profits. Although the current figures, which the company presented on Wednesday, exceeded expectations, the management lowered its earnings forecasts for the year as a whole. Hollister brand boosts sales performance In the first quarter, which ended on May 3, group sales amounted to almost 1.1 billion dollars. This corresponded to an increase of 8 percent compared to the same period last year. The group owed the new sales record to an increase of 22 percent to 549.4 million dollars in the Hollister division. The increase was enough to more than offset a minus of 4 percent to 547.9 million dollars in the Abercrombie segment. All market regions contributed to the strong growth in group sales. In the Americas, revenues increased by 7 percent to 874.8 million dollars, in the EMEA region, which includes Europe, the Middle East and Africa, they rose by 12 percent to 185 million dollars and in the Asia-Pacific region by 5 percent to 37.5 million dollars. Management corrects its earnings targets downwards However, higher costs meant that profit missed the corresponding previous year's level. Operating profit fell by 22 percent to 101.5 million dollars. Net profit attributable to shareholders fell by 29 percent to 80.4 million dollars, but was above the company's expectations. Based on the latest developments and current customs and tax rates, the management updated its annual forecasts. It now expects sales to increase by 3 to 6 percent in 2025/26, after growth of 3 to 5 percent had previously been expected. However, the forecast for the operating margin, which had previously been 14 to 15 percent, was lowered to 12.5 to 13.5 percent. The group now only expects earnings per share of 9.50 to 10.50 dollars, after 10.40 to 11.40 dollars had previously been forecast. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Fashion Network
2 days ago
- Business
- Fashion Network
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%.
