In earnings reports, fashion brands clock continued fallout from tariffs and tease holiday plans

As the summer comes to a close, hot-button issues like tariffs, manufacturing and pricing are continuing to dominate conversations at fashion brands.

After the chaos of the last few months, some companies are managing to find a way forward. Abercrombie & Fitch Co. recently reported record net sales of $1.2 billion for its second fiscal quarter. Urban Outfitters, Inc. reported a record $252.2 million in net income for its first half of the year. Gap Inc., too, is continuing to reap the rewards of its larger turnaround, reporting positive comparable sales for the sixth straight quarter.

Still, the fashion industry — like much of retail — remains on somewhat shaky ground when it comes to predicting demand and sales. Many apparel and footwear brands manufacture abroad, where new, higher tariffs threaten to throw a wrench in their growth plans. Global supply chain costs are on track to rise up to 7% above inflation by the fourth quarter, per Kearney. And apparel and footwear are considered discretionary categories — meaning that, for many shoppers, clothes or shoes may take a backseat to essentials like food and gasoline.

In earnings reports, fashion brands clock continued fallout from tariffs and tease holiday plans – Modern Retail

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