Abercrombie & Fitch Stock Gets Pummeled as Retailer Predicts Trump Tariff Hit
Abercrombie & Fitch's shares plummeted more than 16% in early trading on Wednesday, as the company's holiday quarter sales results at its namesake division came in lower than estimates. The company's 2025 guidance also indicated marked slowdowns in sales growth and operating margin expansion, with up to 100 basis points of year-over-year margin pressure potentially tied to Trump tariffs. This move underscores the growing concern among investors about the impact of tariffs on retail stocks.
- The vulnerability of retailers like Abercrombie & Fitch to external factors such as tariffs highlights the need for more nuanced and forward-looking risk management strategies in the industry.
- How will the long-term effects of Tariff 2025, combined with shifting consumer preferences and e-commerce growth, reshape the competitive landscape of American retail?