Abercrombie & Fitch (ANF) Q1 2025 Earnings

Shares Abercrombie and fitch On Wednesday, after retail, the retailer hit Earnings outlook due to the expected tariffs that will hit their work for $ 50 million.

The company is now expected to be between $ 9.50 per share, between $ 10.50 and $ 3.50 per share between $ 10.40 and $ 11.40. According to LSEG, analysts were waiting for a share of $ 10.33.

Abercrombie also followed the operating margin forecast, another closely by investors. It is now expected to have its operation margin between 12.5% ​​and 13.5%, from 14% to 15% from the previous interval.

The company’s management currently covers the estimated impact of tariffs, including 30% tariff and 10% of the goods from China to China and dozens of other countries. Currently excludes continuous tariffs.

Again, the shares of Abercrombie, which defeated the expectations of the company’s highest and lower line, gave the results of the first quarter resulting in the leadership of income. This year, the fund, which entered Wednesday, fell about 49%.

According to the survey of analysts by LSEG, this is how it was taken in the first quarter in the first quarter compared to the expectations:

• Earnings on a share: $ 1.59 vs $ 1.39 expected
• Income: $ 1.10 billion and $ 1.07 billion is expected

The company’s net income for the three-month period was $ 114 million for a three-month period, $ 114 million or $ 2.14, or $ 1.59 for a share of $ 2.14, or a year ago.

The sale rose to $ 1.10 billion, about $ 1.02 billion in a year increased by about 8% per year. In a news broadcast, Abercrombie said sales have reached the highest quarter of sales.

“This was higher than our expectations and was supported by extensive major growth in our region,” said CEO Fran Horowitz. “Hollister brands, the best quarter of net sales, an increase of 22%, abercrombie stamps decreased by 4% in 2024 sales increase in 2024.”

Externalization outside Outlook, Abercrombie has raised a little annual sales management and is now waiting for income to earn income between 3% and 6% between 3% and 5%. According to LSEG, this is much ahead of the expectations of 3.3%.

Abercrombie for the current quarter, according to LSEG, will be expected between 3% and 5% between 3% and 5%. The company expects to be 12% and 13% of the operating margin and is lower than expectations. Waiting for a share per share, $ 2.10 and 2.30, $ 2.50 is under expectations.

Calling with analysts, Robert Top, Abercrombie tariffs waiting for a $ 70 million hit, but reduced to $ 50 million, he said. The company does not plan to increase the “extensive-based” price increase to replace and save the tasks, However, he tries to replace costs with vendors and diversify the source network.

“We are more diversified, how much we will be,” the ball said in an interview with CNBC. “We are looking for a reduction in costs … Throughout the case, but very clearly in order to maintain long-term investments for these brands, because we see this brands in the global and long term. Therefore there is a very careful approach.”

Abercrombie said about 30% of their products about 30% before the pandemic, but this number is now in low-end digits. His biggest trading partners are now Vietnamese, Cambodia and India, which are the tariffs between 26% and 49% under the April of Donald Trump’s April.

Currently, these tariffs are reduced to 10%, while Trump discusses trading deals with each nation. If Abercrombie’s tariffs came into force, Abercrombie refused to respond to Horowitz when Abercrombie asked for a large-scale price increase.

Abercrombie’s weak management reflects how the tariffs will be reduced to their earnings, but it is expected to be slowly in the banner of sales. Abercrombie’s eponymium chain set a date back in the last few years, but in the first quarter, 4% fell in the first quarter after the 31% increase of the year. Meanwhile, the comparable sale for the Abercrombie brand collapsed 10%.

The call to the analysts admitted that the expectations of Horowitz Abercromin’s performance were short. O The society blamed on the winter inventory that need to make a discount, which was usually made a time with new clothes after the holiday shopping season. This discount affected the sale and margin for Abercrombie quarter.

The company also tests the strong release of the wedding shop in the beginning of the year. In the start of the product launcher, after the trip, breakfast and bachelorette travel includes dresses and dresses related to the wedding of the modern day like breakfast.

“Another part of it, honestly, the wedding shop is not just a great start,” Horowitz said. “So we had strong clothes, but they did not sell to the selement … the start of the shop.”

To build a wedding dress, Abercrombie launched a strike shop this year, which expects Horowitz to be a growth driver for the company.

“We have a really nice reaction to swim in the beginning of the year. Based on our model … I’m going to swim in a bigger way.” Horowitz told CNBC. “Also, we are also able to put the Pre-Planned Holiday Shop, more marketing and more assets behind it.”

Abercrombie brand is waiting to return to grow in the rear half of the year.

He performed better than a banner called the company’s Hollister brand. Sales in the Hollister in the quarter of 22%, and the comparable sales increased by 23%. Abercrome of the teenage chain is expected to grow ahead.