What To Watch For
Abercrombie expects to receive $20 million in tariff refunds for its third quarter.
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Big Number
At least 2.5%. That is how much Abercrombie raised its operating margin outlook for the full year by, forecasting a range between 14.5% and 15%.
Key Background
Abercrombie is one of several U.S. companies that has reported tariff refunds this month. U.S. retailers reported over $5 billion in refunds last week alone, with Walmart accounting for a whopping $2.9 billion of those refunds. Other companies reporting tariff refunds included Target ($994 million), Home Depot ($730 million) and TJ Maxx owner TJX ($331 million). Many retailers have suggested they plan to reinvest their tariff refunds into their companies as opposed to passing them on to consumers who paid higher retail prices. Walmart has said it intends to deploy as much of its refund back into lowering prices for consumers, while Costco has said it plans to do the same, though it is not yet clear how much money in tariff refunds the big-box store has received.
Read more Abercrombie Shares Rocket To 18-Month High After $100 Million Tariff Refund Bolsters Earnings
Further Reading
Americans’ Top Retailers Are Getting Billions In Tariff Refunds—Including Walmart, Target—But Many Consumers Still Aren’t (Forbes)
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