A woman walks past a Hollister store under restoration in...

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Abercrombie soars after racking up record Q1 results, though profit forecast is slashed

The trendy Y2K retailer said its Cali sister brand Hollister helped prop up sales for the quarter.

5/28/25 8:56AM

Abercrombie & Fitch shares leapt more than 30% in early trading after the trendy Zillennial retailer dropped blockbuster first-quarter results, but the company also slashed its full-year outlook as it expects tariffs to eat into its bottom line.

Earnings per share landed at $1.59, well above the $1.36 Wall Street expected and higher than Abercrombie’s own forecast of $1.25 to $1.45. Revenue climbed to a record $1.10 billion, topping estimates of $1.05 billion. Same-store sales also beat, rising 4% compared to the 3% analysts had expected.

Despite the strong quarter, the company said it expects to take $50 million in tariff-related charges this year. Abercrombie nudged its full-year sales outlook higher, now expecting growth of 3% to 6%, up from 3% to 5%, but it cut its full-year profit EPS outlook to $9.50 to $10.50, down from its previously forecast range of $10.40 to $11.40. It also cut its operating margin forecast to 12.5% to 13.5%, down from 14% to 15%.

For the first quarter, the retailer pointed to its Cali-based sibling, Hollister, as a breakout star, with sales surging 22% to $549 million, marking the brand’s best-ever Q1. In contrast, net sales at the Abercrombie namesake brand fell 4%. While the US remains A&F’s largest market, the company saw double-digit growth across Europe, the Middle East, and Africa.

“We remain on offense and focused on top-line growth, store expansion, and investments in digital and technology that will enable sustainable long-term success,” CEO Fran Horowitz said in a statement.

Prior to the earnings pop, A&F shares were down nearly 50% year to date.

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Rivian turns red on the year, squeezed by a recall and the looming end of the EV tax credit

Shares of EV maker Rivian are down more than 5% on Friday following the company’s recall of 24,214 vehicles due to a software issue. The stock move erases Rivian’s year-to-date gain and turns the company negative on the year.

Rivian’s 2025 model year R1S and R1T are affected by the defect, which was identified after a vehicle’s hands-free highway assist software failed to identify another vehicle on the road, causing a low-speed collision. Rivian said it’s released an over-the-air update to fix the issue.

The recall marks Rivian’s fifth this year, affecting nearly 70,000 of its vehicles.

Rivian’s shares are down more than 20% from their 2025 high, which came prior to the passage of President Trump’s “big, beautiful bill.” Through the legislation, the $7,500 EV tax credit is set to expire at the end of the month.

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Moderna, Pfizer dip after WaPo reports Trump officials’ plan to link Covid vaccines to child deaths

Vaccine makers are falling after The Washington Post reported that the Trump administration plans to link the coronavirus vaccine to 25 child deaths.

Moderna and Pfizer, the two companies who sell the vaccine in the US, fell by more than 5% and 2%, respectively. The coronavirus vaccine is virtually the only revenue driver for Moderna, while Pfizer has a larger and more diverse portfolio.

Trump officials to link child deaths to covid shots, alarming career scientists

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Global government debt piles are swelling to record levels. That’s an issue for many nations, but developing countries may be most at risk.

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RH slips after missing Q2 estimates and trimming its outlook amid cost pressure

Restoration Hardware shares dropped Friday morning after the luxury furniture brand missed Q2 estimates and tightened its full-year outlook.

Adjusted earnings per share came in at $2.93, below the Street’s estimate of $3.21. Revenue was $899.2 million, also missing analysts’ forecast of $905 million.

RH now expects full-year revenue growth of 9% to 11%, down from prior guidance of 10% to 13%, as margins get squeezed by tariffs and weakness in the housing market. Wall Street had been looking for about 10% growth this year.

The retailer is taking steps to blunt cost pressures, including shifting sourcing away from China. RH expects receipts to fall from 16% in Q1 to 2% in Q4, with vendors absorbing a meaningful portion of the tariff impact. RH is also boosting US manufacturing capacity in North Carolina and pushing back a new concept launch to next spring.

RH shares are down about 43% year to date.

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Super Micro rises as the company begins shipments of Nvidia Blackwell chips

Super Micro Computer jumped over 6% in premarket trading on Friday after the company announced it has started shipping “Plug-and-Play (PnP)-ready” racks powered by Nvidia’s new Blackwell Ultra chips, giving data center customers a ready-made option to scale up their AI infrastructure.

The rollout enables what SMCI calls “turn-key day-one” operations, with the entire racks preassembled and tested to work out of the box.

“Data center customers face many AI infrastructure challenges: complex network topology and cabling, power delivery, and thermal management,” CEO Charles Liang said. “Through Supermicro Data Center Building Block Solutions with our expertise in on-site deployment, we enable turn-key delivery of the highest-performance AI platform — critical for customers seeking to invest in cutting-edge technology.”

The company says the new system’s performance jumps up to 7.5x over Nvidia’s previous-generation chips. It’s also designed to run more efficiently, using less power and water while taking up less floor space, cutting the overall operating costs by 20%, according to the statement.

The launch comes after a rocky August, when SMCI’s shares plunged on weaker-than-expected quarterly results and management trimmed its annual revenue target.

Investors in Super Micro have endured much volatility this year, as the company has failed to deliver on multiple occasions. Even so, the shares are up nearly 50% year to date.