Good morning. This is Megan Graham filling in for Nat Ives. Today, Arizona Beverages makes a real drink themed on "The Rizzler" after it started as an April Fools' joke; Abercrombie raises its outlook; and Urban Outfitters expects a harder hit from tariffs than it did before.

What began as an April Fools’ joke has become a real product for Arizona Beverages, thanks to a 9-year-old TikTok star known as “The Rizzler," Suzanne Vranica reports. 

Arizona, known for its 99-cent iced-tea tallboys, is releasing a new berry-flavored carbonated juice cocktail called “Rizzler Berry” in October. The drink originated as a lighthearted marketing stunt featuring social-media influencer Christian Joseph Savasta, whose nickname is a riff on “rizz,” a slang word for charisma.

Arizona posted images across its social-media platforms, including X and Instagram the day before April Fools’ hyping a fictional “Rizzberry” drink. The posts featured an illustration of the pint-size influencer fronting a mock-up can of the new drink.

Arizona Chief Marketing Officer Spencer Vultaggio said people genuinely “fell for it,” and the privately held company realized it had to make the product a reality. It began developing the new flavor, described as a combination of strawberry, cherry, raspberry, blackberry, apple and blue-raspberry flavors.

Savasta describes the new flavor as “fizzy and tastes like berry juice…sweet but not too sweet.”

Abercrombie & Fitch raised its outlook for the year after posting higher profit and sales in the second quarter, boosted by its Hollister brand, despite expecting $90 million in tariff costs, Connor Hart and Nicholas G. Miller report. 

The clothing company said Wednesday that it now expects sales to rise 5% to 7% this year, compared with a prior outlook of 3% to 6%. It also increased the floor of its earnings outlook to $10 a share from $9.50 a share, while maintaining a ceiling of $10.50 a share.

Analysts surveyed by FactSet expect full-year sales of $5.21 billion, up 5.2% from last year. Earnings are projected to come in at $10.21 a share.

The revision comes after a record second-quarter sales performance, according to Chief Executive Fran Horowitz. “We entered the second half of 2025 on offense,” she added.

The company said in its earnings call it anticipated a tariff cost impact of $90 million for the year. It said it wasn’t planning broad-based price increases this year, but was evaluating supply chain and vendor alterations to offset tariffs that would take shape in 2026.

Urban Outfitters logged higher sales and profit in the second quarter, but is forecasting a harder hit from tariffs than previously expected, Katherine Hamilton reports. 

The apparel and home goods retailer now expects tariffs may have an impact of 75 basis points on its gross margins in the second half of the year, Chief Operating Officer Frank Conforti said during a call Wednesday. In May, Urban Outfitters said it expected tariffs to lower margins by 20 basis points during that period.

Shares fell 5% to $73.80 in after-hours trading. At the close, the stock was up 42% this year.

Urban Outfitters’ current tariff projections are based on rates as of Wednesday, which include a 50% tax on goods imported from India, management said. The company plans to negotiate terms with vendors, shift its countries of origin where possible, adjust its mode of shipping goods to sea from air, and raise prices.

“We’re looking to protect opening price points and only targeting areas where we believe we can gently raise some prices without significantly affecting the overall customer experience,” Conforti said.

‘K-Pop Demon Hunters’ help fire up noodles maker’s shares. [WSJ]

U.K. beauty brand Trinny London hired Michelle Marks, formerly the global director of digital brands at Charlotte Tilbury, as its new chief marketing officer. [Global Cosmetics News]

Tariffs are hitting your morning brew. Folgers maker says prices will rise further. [WSJ]

Kohl’s stock soars after troubled retailer shows signs of improvement. [WSJ]

Dollarama sees slower growth as consumers turn cautious. [WSJ] 

Taylor Swift and Travis Kelce's engagement sent brands into a marketing frenzy. [Business Insider]

Pernod Ricard expects sales trend to improve amid continued challenges in U.S. and China [WSJ]

The media and retail deals behind the Peppa Pig franchise expansion. [Ad Exchanger]

Nike’s "walking encyclopedia" of company culture to retire after 52 years. [Oregon Live]