Abercrombie & Fitch stock gets pummeled as the retailer predicts a Trump tariff hit

Add Abercrombie & Fitch (ANF) to the increasing database of American retailers getting pounded by investors for informing astir the looming effect of Trump tariffs.

Talk astir Wall Street being dormant astatine the instrumentality successful pricing this 1 into retail stocks!

Abercrombie & Fitch banal crashed much than 16% successful aboriginal trading connected Wednesday arsenic the company's vacation 4th income results astatine its namesake part came successful a small airy versus estimates.

What apt unsettled investors more, though, is the company's 2025 guidance, which called for marked slowdowns successful income maturation and operating borderline expansion.

Up to 100 ground points of year-over-year borderline unit whitethorn beryllium tied to the expected interaction of caller tariffs from the Trump administration.

"The outlook for operating borderline includes estimated interaction from the tariffs announced successful February 2025 connected goods imported from China, Mexico, and Canada into the United States. It does not see impacts related to different imaginable aboriginal argumentation oregon legislative changes, further imaginable tariffs imposed by the United States, oregon imaginable tariffs imposed by countries different than the United States," Abercrombie said successful a tiny people nether its net guidance array successful its property release.

Read more: What Trump's tariffs mean for the system and your wallet

Abercrombie & Fitch CEO Fran Horowitz told maine successful November, conscionable aft President Trump's predetermination win, that the institution volition person 5% to 6% of its US receipts from China successful 2024. She noted that the institution would look to marque further adjustments to its proviso concatenation to offset immoderate tariff pressures.

ANF's informing follows similar cautious comments connected profits from discount retailer Target (TGT) connected Tuesday and electronics concatenation Best Buy (BBY). Both stocks were subsequently hammered.

• Net sales: +9% twelvemonth implicit twelvemonth to $1.58 billion, vs. estimates for $1.57 billion

• Comparable sales: +14% vs. +11.5% estimate

  • Abercrombie & Fitch part sales: $772.7 million, +2% twelvemonth implicit year, vs. $807.5 cardinal estimate

  • Hollister part sales: $812.2 million, +16% twelvemonth connected year, vs. $758 cardinal estimate

• Adjusted diluted EPS: +20% twelvemonth implicit twelvemonth to $3.57, vs. $3.54 estimate

• Full-year outlook:

  • Net sales: +3% to +5% (2024 maturation rate: +16%)

  • Operating margin: In the scope of 14% to 15% (2024: 15%)

Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi connected X @BrianSozzi, Instagram, and LinkedIn. Tips connected stories? Email [email protected].

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