Abercrombie issues troubling warning as tariff threats loom

I was not expecting to end up in an Abercrombie & Fitch dressing room at 31 years old.

But this past year, I was in the market for new jeans. Not just any jeans — the kind that actually fit my body without gapping at the waist or pooling at the ankle.

I asked a few friends for recs, and to my surprise, the name that kept coming up was Abercrombie.

Seriously?

Like many millennials, I had sworn the brand off years ago. Back in high school, Abercrombie was all about overpowering cologne, shirtless greeters, and sizes that barely fit a mannequin.

So yeah, I wasn’t expecting much. But after enough rave reviews — and some Instagram reels that caught my eye — I decided to check out one of their stores in person.

The experience? Way better than I thought.

With thoughtful sizing that actually works for curvy, petite women like me, I left the store with a new respect for the brand.

Now, that same brand is bracing for a major financial hit.

Abercrombie warns that tariffs will likely affect earnings.

Image source: Brandon Bell/Getty Images

Abercrombie slashes profit forecast as tariffs bite into margins

Abercrombie (ANF) has spent years rewriting its story — from logo-heavy teen trend to a more grown-up brand that actually fits real bodies. But no amount of retail glow-up can shield a company from international politics.

This week, Abercrombie warned that tariffs could slash this year's profits by as much as $50 million, according to CNBC.

The brand now expects annual earnings per share to fall to between $9.50 and $10.50, a drop from its earlier range of $10.40 to $11.40. And the reason isn't because sales are slipping…it's because sourcing is getting expensive.

Instead of raising prices across the board, Abercrombie says it’s working behind the scenes to reduce costs and diversify its manufacturing network.

It’s a smart move — one that underscores how even a brand firing on all cylinders can get sideswiped by unpredictable global forces.

What’s looming is bigger than just Abercrombie: if Trump’s proposed tariffs go into effect, countries like Vietnam, Cambodia, and India — now Abercrombie’s biggest trading partners — could face import duties nearing 50%.

That’s a huge potential shift for brands that rely on affordable global production.

Abercrombie’s profits are under pressure, despite record sales

Abercrombie’s first-quarter numbers suggest that customers are still on board. The company posted revenue of $1.10 billion — a record for the quarter — and saw strong performance from its Hollister division, which grew sales by 22%.

But even a blowout quarter may not be enough to reassure investors.

Investors are right to be nervous.

Abercrombie’s namesake brand took a hit this quarter, and the company is facing harder comps ahead. The wedding shop bump has faded. Winter inventory needed heavy discounting. And even if new launches like its vacation shop perform well, profit pressure isn’t going away.

The brand has proven it can evolve, but now it’s entering a phase where it has to prove it can sustain the momentum.

Sourcing costs, global trade tensions, and shifts in consumer spending could all chip away at the progress Abercrombie has made.

The denim might fit better than ever. But the margins? Those may be under stress.