Abercrombie & Fitch Co. has announced its financial results for Q2 2025, marking significant sales growth and improved outlooks for the upcoming periods.
Financial Results of Q2
In Q2 2025, Abercrombie & Fitch Co. reported record net sales of $1.2 billion, a 7% increase compared to the same period last year. This achievement was driven by 8% sales growth in the Americas and a 12% increase in the Asia-Pacific region, though there was a slight 1% decline in sales in Europe, the Middle East, and Africa.
Hollister brands emerged as the best performers with a remarkable 19% sales growth, spurred by strong summer and back-to-school demand. Conversely, Abercrombie brands experienced a 5% sales decline, compared to a strong 26% growth from the previous year. The company's overall operating margin improved to 17.1%, with reported earnings per share of $2.91, inclusive of a litigation settlement benefit.
Outlook for the Full Year
Looking ahead, Abercrombie & Fitch Co. 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%. The company anticipates an operating margin in the range of 13.0% to 13.5%, versus the prior 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, an increase from the earlier guidance of $9.50 to $10.50.
Company Strategy and Investments
For Q3, Abercrombie & Fitch Co. expects net sales growth in the range of 5% to 7%, with an operating margin between 11% and 12%. The company will continue its share repurchase program, designating at least $50 million for buybacks in Q3. Capital expenditures for the year are estimated to be around $225 million, with plans for approximately 40 net store openings and 40 remodels. These strategic investments aim to enhance the company’s physical and digital presence.
Abercrombie & Fitch Co.'s financial results for Q2 2025 showcase the company's successful strategy, allowing for increased forecasts and revealing opportunities for future growth.
