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yesterday

Abercrombie & Fitch Shares Rally as Q1 Sales Jump Led by Hollister; Tariff Costs Trim Profit Outlook

Raising its sales outlook to 3–6 percent after reporting 8 percent first-quarter revenue growth, the retailer attributed a lowered EPS forecast to $50 million in tariff expenses.

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Overview

  • First-quarter net sales reached $1.1 billion, up 8 percent year-over-year, with Hollister driving 22 percent growth.
  • Net income fell to $80.4 million, or $1.59 per share, from $113.9 million, or $2.14, as operating margin slipped to 9.3 percent.
  • The full-year sales forecast rose to 3–6 percent; EPS guidance was cut to $9.50–$10.50 because of $50 million in tariff expenses.
  • Premarket trading saw the stock surge 25 percent, reflecting investor confidence in top-line momentum.
  • Returning $200 million to shareholders via share repurchases, the company projected second-quarter sales growth of 3–5 percent with EPS of $2.10–$2.30.