Abercrombie & Fitch Shares Jump Over 14% on Strong Q1 Sales Despite Tariff Headwinds and Fitch Warning

Abercrombie & Fitch reported strong first-quarter earnings, surpassing both earnings per share and revenue expectations, driven by solid net sales growth across the Americas, EMEA, and APAC regions. The company’s stock surged more than 14% following the earnings release, despite a revised, lower profit outlook attributed to tariff-related headwinds. Analysts noted that the tariff environment has introduced higher execution risks for U.S. soft goods retailers, as highlighted by Fitch Ratings, which also pointed to weakening U.S. prime credit card performance amid ongoing economic uncertainty. The retailer’s positive sales momentum has been partially supported by a ’90s fashion revival, benefiting both Abercrombie & Fitch and Gap. While tariffs pose challenges, Abercrombie’s outlook suggests that sales remain resilient in the face of these pressures.