Abercrombie Adjusts Growth Forecast Amidst $90M Tariff Hit

Abercrombie cuts its growth forecast for fiscal 2025. The U.S. company specializing in young fashion has set its sales outlook for the year as a whole at at least 6%, while it previously put it at between 6% and 7%. The reduction in its outlook has caused the company to fall on the stock market.

It has also slightly reduced its expected operating margin, now 13%, previously between 13% and 13.5%. In a statement, Abercrombie on Monday put the expected impact of the tariffs imposed by U.S. President Donald Trump at $90 million.

Abercrombie has also adjusted the growth outlook for the fourth quarter of 2025, now set at 5%, and previously between 4% and 6%. Group CEO Fran Horowitz said the company expects “top-tier profitability” while “managing the arrival of tariffs and increasing its investments.“

Abercrombie also adjusted its fourth-quarter growth outlook to 5%

“Hollister had a strong performance over Christmas,“ Horowitz said. The board has pointed to sales growth in the proposal of about 15% for the fiscal year. Performance will be lower at Abercrombie, expected to be in the low single digits in the fourth quarter.

The adjustment in the growth outlook has meant that Abercrombie’s share price has fallen more than 17% at the opening of the New York Stock Exchange.

Abercrombie closed the third quarter with sales up $1.29 billion, up 6.79% from the same period in 2024. For the first nine months of the year, the company posted a 6.93% increase in revenues to $3.596 billion.

The company’s operating income fell by 13.41% in the third quarter to $155 million, while at the end of the first nine months the decline was contained to 4.34%, to $463 million. Net income, meanwhile, followed a similar trend, with a 14.17% decline in the third quarter and 11.46% in the first nine months of the year.