10:37 AM EDT, 05/28/2025 (MT Newswires) -- Abercrombie & Fitch ( ANF ) shares soared intraday Wednesday after the apparel retailer's fiscal first-quarter results came in higher than expected, while it raised the top end of its full-year sales guidance.

Adjusted earnings per share for the three-month period ended May 3 fell to $1.59 from $2.06 a year earlier, but exceeded the consensus of $1.36 on FactSet. Net sales increased 8% year on year to $1.10 billion, just above analysts' $1.06 billion estimate. Comparable sales rose 4%.

Shares of the company surged 28% in Wednesday trade. The stock is down 34% so far this year.

"We saw net sales growth across all regions in the first quarter," Chief Executive Fran Horowitz told analysts on an earnings call, according to a FactSet transcript. "From a brand perspective, Hollister led the way, delivering record first quarter results, with 22% net sales growth to last year on top of 12% growth in the first quarter of 2024."

Revenue for the Abercrombie brand fell 4%.

Abercrombie & Fitch ( ANF ) now expects fiscal 2025 net sales to rise between 3% and 6%, compared with the prior outlook that called for 3% to 5% growth. Analysts polled by FactSet expect $5.11 billion. Abercrombie & Fitch ( ANF ) reported net sales of $4.95 billon for 2024, up 16% year-on-year.

The company, however, is now guiding full-year EPS in the range of $9.50 to $10.50, down from the previous forecast of $10.40 to $11.40. Five analysts' GAAP consensus view is $10.37, which would be down from the previous year's $10.69.

"On the cost side, our 2025 outlook assumes a 10% tariff on all global imports into the US, as well as a 30% tariff on imports from China," Chief Financial Officer Robert Ball said on the call. "For China specifically, we've worked for some time now to relocate resources of supply and, this year's sourcing volume from China will be in the low single digits. Globally, we remain nicely diversified across 16 countries."

The assumed tariffs carry a net cost impact of about $50 million for 2025, shrinking the full-year operating margin outlook by 100 basis points, Ball told analysts.

Earlier this month, the US and China agreed to suspend most levies on each other's goods for 90 days, while Washington reached a trade agreement with the UK. President Donald Trump recently extended his 50% tariff deadline for the European Union to July 9.

For the fiscal second quarter, the company anticipates EPS of $2.10 to $2.30 on net sales growth of 3% to 5%. Analysts expect $2.46 and $1.18 billion, respectively.

"We continue to expect slightly higher costs from freight, as well as around $5 million of tariff impact, net of mitigation efforts," Ball said while discussing the second-quarter outlook.

Price: 98.93, Change: +21.78, Percent Change: +28.23