Abercrombie soars, but tariff-related costs loom

Despite a revised yearly outlook.

Transcript

00:00Despite beating Wall Street estimates for both its top and bottom lines in Q1,

00:04Abercrombie & Fitch slashed its profit outlook and its blaming tariffs.

00:08The retailer says tariffs, as they're currently imposed, will reduce its earnings by $50 million.

00:13Abercrombie's sales increased by about 8% year-over-year, bringing in $1.1 billion in its

00:18first quarter. In a statement, CFO Fran Horowitz said, this was above our expectations and was

00:23supported by broad-based growth across our three regions. It was Abercrombie's best first quarter

00:28in terms of sales and company history. While the retailer says tariffs are largely to blame for

00:33the revised outlook, it also said it expects to see a drop in sales at its namesake stores.

00:38While sales at its Hollister stores outperformed in Q1, Abercrombie stores took a 4% sales hit,

00:43a stark change from its 31% increase a year ago. Shares of Abercrombie were up over 25%

00:49as of the open of trading on Wednesday, May 28th. That'll do it for your daily briefing.

00:53From New York City, I'm Kelsey Barbario with The Street.