Abercrombie & Fitch (ANF) shares plummeted 8.09% in Thursday's pre-market trading session following the company's decision to cut its full-year profit outlook. The apparel retailer cited concerns over tariffs, softening consumer spending, and a more competitive promotional landscape as key factors behind the revised guidance.

The company lowered its forecast for net income to a range of $9.50 to $10.40 per share, down from its previous guidance of $10.50 to $11.40 per share. This adjustment reflects the potential impact of tariffs on global imports, including a 10% tariff on global imports and a 30% tariff on imports from China. CFO Robert Ball noted that the company had been working to adjust its supply chains in anticipation of these challenges, with sourcing volume from China expected to be in the low single digits this year.

The retail sector as a whole is grappling with a changing macroeconomic environment. Abercrombie & Fitch's outlook revision comes amid broader concerns about consumer discretionary spending and increased competition in the retail space. The company's proactive measures to diversify its supply chain across 16 countries demonstrate its efforts to mitigate the impact of ongoing trade tensions. However, investors appear to be reacting cautiously to the lowered guidance, leading to the significant drop in the stock price during pre-market trading.