Abercrombie & Fitch Co. Reports Strong Q2 2025 Results, Raises Full-Year Outlook

Abercrombie & Fitch Co. (NYSE: ANF) has reported its financial results for the second quarter of fiscal 2025, showcasing a robust performance with record net sales and an upward revision of its full-year outlook.

ANF Outperforms Expectations with Q2 FY’25 Results

The second quarter of fiscal 2025 was a period of significant achievement for Abercrombie & Fitch Co., as the company reported its 11th consecutive quarter of growth. The quarter ended August 2, 2025, saw record net sales of $1.2 billion, representing a 7% increase from the same period last year. This performance exceeded the company’s outlook and was driven by a strong 8% sales growth in the Americas and a 12% increase in the Asia-Pacific region, although sales in Europe, the Middle East, and Africa saw a slight decline of 1%.

Hollister brands were a standout performer, achieving their best-ever second-quarter net sales with a remarkable 19% growth, fueled by robust summer and back-to-school demand. In contrast, Abercrombie brands experienced a 5% decline in net sales, as they lapped a strong 26% growth from the prior year. Despite this, the company’s overall operating margin improved to 17.1%, with reported earnings per share reaching $2.91, including a litigation settlement benefit of $0.59 per share.

Excluding the favorable litigation settlement, Abercrombie & Fitch Co. still exceeded expectations with an adjusted operating margin of 13.9% and adjusted earnings per share of $2.32. These results surpassed the anticipated earnings per share of $2.27 and revenue of $1.19 billion for the quarter, demonstrating the company’s ability to outperform market expectations and deliver value to its shareholders.

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ANF Raises Full-Year Net Sales Growth Forecast to 5%-7% Range

Looking ahead, Abercrombie & Fitch Co. has issued an optimistic outlook for the remainder of fiscal 2025. The company has raised its full-year net sales growth projection to a range of 5% to 7%, up from the previous estimate of 3% to 6%. This adjustment reflects the company’s confidence in its market positioning and growth trajectory, buoyed by its strong performance in the first half of the year.

The company also anticipates an operating margin in the range of 13.0% to 13.5%, compared to the previous range of 12.5% to 13.5%. The effective tax rate is expected to be around 30%, a slight increase from the previous estimate of 27%. Net income per diluted share is now projected to be between $10.00 and $10.50, up from the earlier guidance of $9.50 to $10.50. These revisions are supported by a $39 million pre-tax benefit from a litigation settlement, which has been factored into the full-year outlook.

For the third quarter, Abercrombie & Fitch Co. expects net sales growth in the range of 5% to 7%, with an operating margin between 11% and 12%. The company plans to continue its share repurchase program, with at least $50 million earmarked for buybacks in the third quarter. Capital expenditures for the year are estimated to be around $225 million, with plans for approximately 40 net store openings and 40 remodels and right-sizes. These strategic investments are aimed at enhancing the company’s physical and digital presence, supporting its long-term growth objectives.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.