Abercrombie & Fitch has reported second quarter (Q2) fiscal 2025 (FY25) results for the period ended August 2, 2025, with net sales rising 7 per cent to $1.2 billion.

Regional growth was led by an 8 per cent increase in the Americas and 12 per cent in APAC, offsetting a 1 per cent decline in EMEA. Comparable sales grew 3 per cent overall. By brand, Hollister surged 19 per cent to $656.7 million, while Abercrombie declined 5 per cent to $551.9 million.

Reported net income per diluted share rose to $2.91 from $2.50 a year earlier, while adjusted non-GAAP EPS declined to $2.32 from $2.50, reflecting the absence of last year’s foreign currency benefit.

Operating income reached $207 million on a reported basis, versus $176 million in Q2 FY24, with adjusted non-GAAP operating income at $168 million. Reported operating margin improved to 17.1 per cent of sales, compared to 15.5 per cent last year, while adjusted operating margin was 13.9 per cent, the company said in a financial release.

“We delivered record second quarter net sales, exceeding our expectations, with 7 per cent growth to last year. We continued to drive meaningful engagement with our teen customer in Hollister brands, growing 19 per cent on strong summer and back-to-school demand. While we made progress on key inventory initiatives by leveraging promotions and testing new product concepts, Abercrombie brands net sales were down 5 per cent, lapping 26 per cent growth in the prior year. On the bottom line, we exceeded our second quarter profitability expectations, while also returning $50 million to shareholders through our sixth consecutive quarter of share repurchases,” said Fran Horowitz, chief executive officer.

The company raised its fiscal 2025 full-year outlook, projecting net sales growth of 5–7 per cent, compared to 3–6 per cent previously. Operating margin is now expected between 13–13.5 per cent, with net income per diluted share in the $10–$10.5 range.

Capital expenditures are estimated at about $225 million, above earlier guidance of $200 million, with real estate plans unchanged at roughly 40 net store openings, 60 openings and 20 closures, and 40 remodels or right-sizings.

For the third quarter, Abercrombie forecasts 5–7 per cent sales growth, an operating margin of 11–12 per cent, and EPS between $2.05 and $2.25.

“We entered the second half of 2025 on offense. We are increasing our full year net sales outlook, reflecting our strong positioning and growth trajectory, building on record 2024 results. Our team remains focused on delivering for our customers while investing to capitalise on the significant, long-term opportunities for our global brands,” Horowitz added.

Abercrombie & Fitch has posted Q2 FY25 net sales up 7 per cent to $1.2 billion, led by Americas and APAC offsetting a 1 per cent EMEA dip.
Hollister rose 19 per cent to $656.7 million, while Abercrombie fell 5 per cent to $551.9 million.
EPS was $2.91.
Operating margin improved to 17.1 per cent.
The retailer raised FY25 outlook to 5–7 per cent sales growth and EPS of $10–$10.5.

Fibre2Fashion News Desk (HU)