The retail clothing monster is dealing with the tariff consequences.
Abercrombie & Fitch (ANF) is down almost 10%.
CFO Robert Ball says ""We expect the first half will be adversely impacted by higher year-over-year freight costs and more normalized carryover inventory selling, and the second half will benefit from expected lower freight than last year".
China, Mexico and Canada seem to be the countries where tariffs are being implemented that will have the biggest impact on ANF. They source different materials from about 17 different countries so seeing a slight increase in the products would not come as a shock.
Are Tariffs ANF's Biggest Threat?
The short answer is no. Yes, tariffs will cause a strategic shift but the real problem they face is apparel inflation which is currently at about 8.5%.
The stock is up long term (+600% over the past 5 years) but is down over 40% YTD.
If you like retail, Macy's is a stock worth looking at before they announce their earnings.
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