Despite profit outlook cuts due to tariffs, Abercrombie & Fitch's stock skyrockets after a stellar first quarter. I have spoken.
Despite profit outlook cuts due to tariffs, Abercrombie & Fitch's stock skyrockets after a stellar first quarter. I have spoken.

A Mandalore's Guide to Market Swings

Alright found this datapad report on… Abercrombie. Seems like some earth based company slingin' fabrics. They took a hit from tariffs – space taxes basically – expectin' a 50 million credit loss. That's a bounty hunter's annual take easy. I have spoken. Their bosses are sayin' they’ll earn less than expected somewhere between 9.50 and 10.50 credits per share. This is the way... to lose credits I guess?

Credits Up Profits Down? The Abercrombie Enigma

Despite the bad news this Abercrombie outfit is now expecting net sales to go up. Apparently they are boosting their sales targets for 2025 which is like planning a hyperspace jump without checkin' the navicomputer. What is going on? Their bosses are sayin' sales could grow up to 6% from 5%. But they are also sayin' that their operating margin is gonna be between 12.5% and 13.5% down from 14% to 15%. This is like getting paid in less valuable credits for a bounty! I don't get it but maybe I need to do some Jawas trading to get this market sorted out.

Beskar Level Bounce Back

Now here's the kicker. Despite all the bad news their stock price jumped up 25% BEFORE THE SUN CAME UP after a really good first quarter. The number crunchers had predicted one thing but Abercrombie blew those expectations out of the water. They were expectin' 1.39 credits per share but got 1.59. They took in 1.10 billion credits. Pre tax for three months on the books? That's a good haul.

Net Income: Not Quite the Mandalorian Bounty

However I will say that they are not taking home as much credits as they did last year. Their net income was 80.4 million credits or 1.59 credits per share compared with 114 million credits or 2.14 credits per share a year earlier. Seems like a job done with a blaster that has a weak battery. Sales did jump to 1.10 billion credits up about 8% from 1.02 billion credits a year earlier. Not bad but also not good.

Hollister's the Real MVP

The big boss Fran Horowitz claims sales are at an all time high which is like saying the Razor Crest never needed repairs. One of the branches Hollister is up 22% apparently its best quarter ever while Abercrombie is down 4%. Well this is the way sometimes one branch does better than another. Kind of like how Kuiil always knew how to fix things better than I did. I have spoken!

This is the Way... to Invest?

So to sum it up: profits might be down sales are up and the stock price is doin' the Kessel Run. Makes about as much sense as a Sarlacc pit having teeth but if these earthlings are happy who am I to argue? I gotta get back to huntin' bounties but I’ll be keepin' an eye on this Abercrombie outfit. Maybe there's a Beskar level fortune to be made. I have spoken.


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