Abercrombie & Fitch (ANF) Q2 2025 earnings
AberCrombie & Fitch While the clothing company struggled to overcome its increase in the last financial year, the sales increase slowed down again in the second quarter.
For a quarter, the names in the AberCrombie brand fell by 5%, while comparable sales fell by 11%.
However, the success of the young -oriented Hollister brand helped to save the quarter. In general, AberCrombie & Fitch sales increased by 7% and led 19% growth in Hollister, the company’s second best net sales growth. Comparative sales throughout the enterprise increased by 3%and saw that comparable sales under the leadership of Hollister increased by 19%.
AberCrombie defeated Wall Street expectations narrowly in the upper and lines. The company has also increased the full -year revenue view and is now expected to increase sales to 5% to 7% compared to previous guidance for 3 to 6% growth. According to LSEG, most of the Wall Street expectations would grow by 5.2%.
The shares in drooping trade fell approximately 4%.
Based on a questionnaire of LSEG’s analysts, how the company has made Wall Street in the second financial quarter of the company:
- Earning per share: $ 2.32 corrected $ 2.30 expected
- Income: 1.21 billion dollars and $ 1.20 billion expected
The company’s net income for the three -month period, which ended on August 2, was $ 141 million or $ 2.91 per share compared to $ 133 million or $ 2.50 per share a year ago. Excluding the effect of a positive case agreement, Abercrombie won $ 2.32 per share.
Sales rose to $ 1.21 billion and an increase of approximately 7% from $ 1.13 billion compared to the previous year.
“We entered the second half of 2025 on the offensive.” He said. “We increase our full -year net sales appearance based on record 2024 results, which reflects our strong positioning and growth orbit.
Abercrombie’s gave a better sales look for the current quarter than expected. According to LSEG, it predicts that income will increase between 5% and 7% and will exceed 4.3% growth expectations.
Meanwhile, the appearance of snow for the third quarter of financially is weaker than expected. According to LSEG, the company predicts that earnings per share will be between $ 2,05 and $ 2.25 below $ 2.53.
AberCrombie tightens the gains look all year round, and now earnings per share to be between $ 10.00 and $ 10.50. This is compared with $ 9.50 to $ 10.50 per share.
Abercrombie’s guidance includes a net tariff costs of approximately $ 90 million – almost twice that it predicts. When he announced his first quarter earnings in May, AberCrombie said he expects a hit of $ 70 million in which he could fall from tariffs to $ 50 million via mitigation.
At that time, President Donald Trump’s so -called mutual tariffs were held at 10% in most of the world. However, Abercrombie is facing higher tasks on goods from Vietnam, Cambodia and India, which are key production zones for the company.
At that time, the Company said that he did not plan wide price increases as part of his efforts to mitigate. It is not clear whether AberCrombie will change this attitude because the tariffs are increasing in Asia.
AberCrombie & Fitch, a forgotten shopping center brand, has been on a rocket ship for the last few years. However, the fluctuation began to slow down in the name Banner.
The company has turned into new categories such as dresses, athletes and bride to encourage growth. He also works to expand internationally and lean on partnerships.
On Monday, the company announced that NFL will be the first “official fashion partner”-a perennial agreement containing personal styles for athletes-led campaigns and personal styles for clothes designed by the player. The partnership comes after AberCrombie released NFL licensed products, a well -performing category for the company in 2022.
In order to advertise the partnership, Christian McCaffrey worked with star players such as Tee Higgins and Ceedee LAMB and designed a limited number of commonly designed clothes to be sold in the coming season.
The partnership reflects the steps taken to ensure that retailers can continue to expand sales and to keep shoppers with new clothes and accessories to remain related to consumers at a time when they withdraw beautiful items. Rivals Levi– American Eagle And Openness Before the return to school and autumn shopping seasons, I met with celebrities in the latest marketing campaigns.
Nevertheless, the slowdown, especially as the competition continues to warm up, it reveals questions about how the brand will grow in the next neighborhoods, Globaldata General Manager Neil Saunders is a note.
Saunders, “Better numbers … Probably when the previous year begins to facilitate comparison, but they need to be designed by the company. Here we believe that the brand has some good initiatives, including the overseas expansion of the brand.” He said. “Our latest channel controls in new stores in London were positive, but we believe that the stores can reach a higher potential after the consumer economy in the UK has strengthened.” ‘
International, Abercrombie’s expansion efforts work in some parts of the world. While sales in the Asia Pacific region grew by 12%for a quarter, comparable sales increased by 3%. This was balanced by the slowdown in Europe, Middle East and Africa, where sales decreased by 1% and comparative sales.
AberCrombie also started to sell wholesale for the AberCrombie Kids brand. Saunders said the company had a very small share of the general market, which was worth 82.1 billion dollars last year.
“This leaves an important ceiling gap for growth.” He said. “It is a logical strategy to expand through wholesale sales: it provides relatively quick access to new customers, and AberCrombie requires much less capital than opening additional stores where children are still relatively low.”
