Abercrombie Stock Spikes 35% on $100 Million Tariff Refund
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Abercrombie & Fitch shares surged 34.8% to an 18-month high on Wednesday after the retailer reported $100 million in tariff refunds for its second quarter. The refunds lifted operating income to $253 million, up from $207 million a year earlier, and earnings per share of $4.17 far exceeded analyst forecasts of $1.99. The company also raised its full-year operating margin outlook by at least 2.5 percentage points to a range of 14.5% to 15%.
Key Facts
- Abercrombie shares rose 34.8% to their highest level since January 2025.
- The company reported $100 million in tariff refunds, boosting operating income to $253 million from $207 million a year earlier.
- Earnings per share reached $4.17, exceeding the $1.99 consensus estimate from FactSet.
- Net sales for the second quarter were $1.3 billion, up 5% year over year.
- Abercrombie expects $20 million in additional tariff refunds in the third quarter.
Tariff Refund Impact
The $100 million refund followed a U.S. Court of International Trade ruling that companies which paid tariffs struck down by the Supreme Court were entitled to refunds. Abercrombie reported $90 million in tariff expenses last year, which reduced its full-year operating margin outlook by 1.7 percentage points and equaled about 16% of its 2025 net income. The company raised its full-year operating margin forecast by at least 2.5 percentage points to between 14.5% and 15%.
Retail Sector Refunds
U.S. retailers reported over $5 billion in tariff refunds last week alone. Walmart accounted for $2.9 billion of those refunds, while Target reported $994 million, Home Depot $730 million, and TJX $331 million. Walmart and Costco have said they plan to reinvest refunds into lowering consumer prices.
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Abercrombie Stock Spikes 35% on $100 Million Tariff Refund
