The news: Tariffs and economic uncertainty are threatening Abercrombie & Fitch’s resurgence, despite a strong holiday performance.
- Abercrombie expects net sales growth of just 3% to 5% in fiscal 2025, a considerable slowdown from the 16% YoY increase it notched in 2024. That’s well short of estimates for a 6.8% rise.
- Profits will also be pressured: The retailer expects Q1 operating margins of 8% to 9%, compared with expectations for 12.8%.
A bleak outlook: The fact that Abercrombie, with its solid growth streak, is cautious about the future underscores the challenging road ahead for the retail industry.