Abercrombie & Fitch Co.

Hollister is crushing it with 16% growth, but Abercrombie brands are decelerating — down 2% with inventory being managed tightly. Tariffs are eating 210 basis points of operating margin this quarter, with ~$90M full-year tariff expense baked into guidance. Revenue growth is real but profitability is compressing — operating margin dropped from 14.8% to 12.0% YoY.