Abercrombie & Fitch Co. Reports First Quarter Fiscal 2025 Results

Abercrombie & Fitch Co. has released its financial results for the first quarter of fiscal 2025, ending May 3, 2025. The company reported record first-quarter net sales of $1.1 billion, an 8% increase from the previous year, surpassing its outlook. This growth was driven by strong performance across all regions, with notable contributions from the Hollister brand.

Financial Highlights

The company achieved a net income per diluted share of $1.59, compared to $2.14 in the same period last year. Operating income was $102 million, down from $130 million the previous year, with an operating margin of 9.3%, a decrease from 12.7% last year. The company also repurchased 2.6 million shares for $200 million, representing 5% of shares outstanding as of February 1, 2025.

Business and Operational Highlights

Net sales growth was observed across all regions: the Americas saw a 7% increase, EMEA grew by 12%, and APAC by 5%. The Hollister brand led the performance with a 22% increase in net sales, while Abercrombie brands saw a 4% decline. The company also reported a decrease in cash and equivalents to $511 million from $773 million as of February 1, 2025.

Strategic Initiatives and Corporate Developments

Abercrombie & Fitch Co. continued its share repurchase program, buying back $200 million worth of shares in the first quarter. The company has $1.1 billion remaining on the share repurchase authorization established in March 2025. Additionally, the company reported liquidity of approximately $940 million, down from $1.2 billion as of February 1, 2025.

Management's Perspective

CEO Fran Horowitz commented, "We delivered record first-quarter net sales with 8% growth to last year. This was above our expectations and was supported by broad-based growth across our three regions. Hollister brands led the performance with growth of 22%, achieving its best-ever first-quarter net sales, while Abercrombie brands net sales were down 4% against 31% sales growth in 2024. We exceeded our expectations on the bottom line as well, with an operating margin of 9.3% and earnings per share of $1.59."

Future Outlook

For fiscal 2025, Abercrombie & Fitch Co. expects net sales growth in the range of 3% to 6%, with an operating margin between 12.5% and 13.5%. The company also anticipates net income per diluted share to be in the range of $9.50 to $10.50. The second-quarter outlook includes net sales growth of 3% to 5% and an operating margin of 12% to 13%.

SEC Filing: ABERCROMBIE & FITCH CO /DE/ [ ANF ] - 8-K - May. 29, 2025