Abercrombie & Fitch Co. (NYSE: ANF) saw its stock open sharply higher at $103.82 on Wednesday, up $26.67 or 34.5% from the previous day’s close of $77.15, following the release of its first-quarter earnings report. While the priced drifted back in early trading, it still remains considerably higher than yesterday’s close. This surge comes despite the company lowering its full-year profit guidance due to the financial impact of tariffs.
The apparel retailer beat expectations on both revenue and earnings for the quarter ended May 3, 2025, reporting record first-quarter net sales of $1.10 billion, an 8% increase compared to the prior year. This performance exceeded analyst forecasts and was driven by strong growth in the Hollister brand, which grew 22%, achieving its highest first-quarter sales ever. Meanwhile, the Abercrombie brand saw a 4% decline in net sales, a slowdown compared to its 31% growth in 2024.
Despite these positive results, Abercrombie & Fitch revised its full-year earnings per share (EPS) guidance downward to a range of $9.50 to $10.50, from the prior forecast of $10.40 to $11.40. The company attributed this reduction primarily to tariffs currently in effect, which are expected to reduce earnings by approximately $50 million. This adjustment reflects the ongoing challenges posed by trade policies on the cost structure of retailers reliant on imported goods.
The tariff-related costs have also influenced the company’s operating margin outlook, which was lowered to a range of 12.5% to 13.5%, down from the previous 14% to 15% estimate. Despite this, Abercrombie raised the top end of its 2025 revenue growth outlook to between 3% and 6%, an improvement from the earlier 3% to 5% range, signaling confidence in its sales momentum.
The company’s CEO, Fran Horowitz, highlighted the broad-based growth across Abercrombie & Fitch’s three geographic regions, Americas, EMEA, and APAC, as a key contributor to the strong quarterly performance. The company also repurchased 2.6 million shares for $200 million during the quarter, representing about 5% of shares outstanding as of early February 2025.
Abercrombie & Fitch’s stock had faced significant pressure earlier in the year, dropping nearly 49% before this rebound. The sharp jump in Wednesday’s trading session reflects investor optimism about the company’s ability to deliver strong sales and earnings despite the tariff headwinds.
Abercrombie & Fitch’s latest results show a company that is maintaining solid operational performance and sales growth, particularly through its Hollister brand, while adjusting profit expectations due to external trade-related costs. The stock’s strong opening reflects market recognition of the company’s resilience and growth prospects despite the challenges ahead.
