Abercrombie & Fitch forecast muted annual sales growth, citing uncertainty from new U.S. tariffs, sending the retailer’s shares down about 7% in premarket trading Wednesday.
The apparel company said its outlook already includes the estimated impact of 15% U.S. tariffs, reflecting rising costs tied to global trade policy changes.
President Donald Trump recently raised a temporary tariff from 10% to 15%, following a Supreme Court ruling that struck down earlier tariffs imposed under emergency powers.
U.S. Treasury Secretary Scott Bessent confirmed the new global tariff rate is expected to take effect this week.
The rate remains below last year’s additional 20% duties on countries such as Vietnam and Indonesia, key manufacturing hubs for clothing brands.
Abercrombie expects fiscal 2026 net sales growth between 3% and 5%, slightly below analysts’ projections of a 4.2% increase.
The company forecasts earnings per share of $10.20 to $11, with the midpoint exceeding Wall Street expectations.
Management said tariff impacts could reduce net sales by about 70 basis points, excluding any potential refunds from previously imposed duties.
