Abercrombie & Fitch on Wednesday issued guidance indicating restrained sales expansion for the coming year and outlined how recent U.S. tariff developments are being reflected in its outlook.
The retailer said it is factoring in the consequences of 15% U.S. tariffs that were set out by President Donald Trump following the Supreme Court’s decision to strike down the government’s emergency levies. Prior to the Supreme Court ruling that invalidated the broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA), many of Abercrombie & Fitch’s principal sourcing countries - including Vietnam, Indonesia, and Cambodia - had been subject to higher import duties into the United States.
The U.S. has been collecting a temporary 10% blanket tariff on imports since last week, with the administration planning to raise that rate to 15%. Abercrombie said its full-year forecast incorporates an assumed tariff impact of 70 basis points, and the company noted this outlook does not reflect any potential refunds or recoveries associated with the struck-down duties.
On profitability, Abercrombie & Fitch expects annual net income per share to fall between $10.20 and $11. The midpoint of that range is above analysts’ consensus of $10.36, based on data compiled by LSEG. For the fourth quarter, adjusted net income per share came in at $3.68, topping expectations of $3.57.
For fiscal 2026, the company is forecasting net sales growth of between 3% and 5%, compared with analysts’ average projection of a 4.2% increase.
Investor tools and strategies were referenced alongside the results. Should you be buying ANF right now? ProPicks AI evaluates ANF alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias - it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%).
The company’s guidance and its tariff assumptions leave a mix of factors that market participants will weigh: an earnings outlook that outpaces Street estimates at the midpoint, modest sales expectations, and explicit sensitivity to tariff policy and any subsequent recoveries.