Abercrombie CFO Flags $90M Tariff Blow, Retail Still Bets Big

Abercrombie raised its fiscal 2025 net sales forecast to be between 5% and 7% increase, up from the previous estimate of 3% to 6%.

Abercrombie & Fitch (ANF) CFO Robert Ball said on Wednesday that the assumed impact from the Trump administration’s tariffs carries a cost impact of around $90 million for 2025, impacting the company’s full-year operating margin outlook by 170 basis points.

The company had initially anticipated $50 million impact from tariffs. “We continue to expect China sourcing share of the U. S. will be in the low single digits for the year and we have minimal exposure to the de minimis exemption that is no longer in place,” Ball said during a post-earnings call.

He added that the company has diversified sourcing across 16 countries and the team is continuing to evaluate supply chain footprint changes, vendor negotiations, and operating expense efficiencies that “will largely take shape in fiscal 2026.”

Retail sentiment on Abercrombie & Fitch improved to ‘extremely bullish’ from ‘bullish’ territory a day ago, with chatter at ‘extremely high’ levels, according to data from Stocktwits.

The company raised its fiscal 2025 net sales forecast to be between 5% and 7% increase, up from the previous estimate of 3% to 6%. Abercrombie now expects annual profit per share between $10.00 and $10.50, compared to the prior forecast of $9.50 to $10.50.

Ball added that the company will work to pull back promotional days “here and there” to see consumer response and will watch how it plays out for the back half of the year.

Abercrombie’s second-quarter net sales came in at $1.21 billion, compared with Wall Street expectations of $1.19 billion, according to data compiled by Fiscal AI. Its quarterly adjusted earnings per share (EPS) were $2.32, topping estimates of $2.27.

Shares of Abercrombie were down over 35% so far this year and have declined nearly 30% in the last 12 months.

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