Abercrombie & Fitch Cuts Tariff Margin Drag to 20 Basis Points, Maintains EPS Guidance
Abercrombie & Fitch reduced expected 2026 tariff margin drag to 20 basis points from a prior 70 basis point estimate through improved supply chain strategies, while maintaining full-year EPS guidance of $10.20–$11.00 on net sales growth of 3–5 percent.
Abercrombie & Fitch reduced its expected tariff-related margin drag for 2026 to 20 basis points, down from a prior estimate of 70 basis points, through improved supply chain strategies [1]. The company maintained its full-year EPS guidance of $10.20–$11.00, flat at the midpoint, as net sales growth of 3–5 percent offsets tariff and ERP migration costs [1].
Management assumes a 15 percent tariff rate in the guidance, implying approximately $40 million, or around 70 basis points of pressure in 2026 [2]. The 50-basis-point improvement from the initial estimate reflects operational adjustments including vendor diversification and pricing actions. Operating margin is expected between 12.0 and 12.5 percent for the full year [2].
Continue reading
3 more paragraphs for subscribers.
Free readers get a daily preview and the weekly long-form. Premium unlocks every brief in full, AM & PM editions, alerts, and the archive.