Abercrombie & Fitch Shares Surge 37% After Earnings Beat

Shares of Abercrombie & Fitch surged 37% to $148.91 on Wednesday after the retailer reported adjusted earnings of $4.17 per diluted share, significantly exceeding the $1.99 consensus. The results were bolstered by a $100 million pre-tax IEEPA tariff refund, a windfall similar to those recently reported by retail peers Ross Stores and Kohl's.

Quarterly revenue reached $1.27 billion, representing a 5% increase. Growth was primarily driven by the namesake Abercrombie brand, which saw an 8% increase in sales and a 4% rise in same-store sales. Conversely, the Hollister brand grew revenue by 2% but experienced a larger-than-expected 3% decline in comparable sales, contributing to flat companywide comparable sales.

Following the results, the company raised its full-year sales growth forecast to 5% and increased its annual adjusted earnings per share projection to a range of $13.10 to $13.60, up from the previous high-end estimate of $11. CEO Fran Horowitz stated that operating margins and earnings per share beat guidance even beyond the impact of the tariff refund.