Abercrombie & Fitch projects record sales amid revised 2025 outlook

Abercrombie & Fitch Co. has issued an updated business outlook for the fourth quarter and full fiscal year of 2025, signaling a period of record-breaking performance balanced by evolving trade challenges.

Chief executive officer Fran Horowitz reported that the company maintained a strong "on offense" strategy throughout the holiday season, resulting in record quarter-to-date net sales through December. This growth was notably balanced across all regions, brands, and channels, with the Hollister brand positioned for mid-teens net sales growth for the full year and Abercrombie brands expecting low single-digit growth in the fourth quarter following last year's record results.

For the full fiscal year 2025, the retailer now expects net sales growth of at least 6 percent, a slight narrowing from its previous range of 6 percent to 7 percent. The company's operating margin is projected to be around 13 percent, while net income per diluted share is now estimated between 10.30 dollars and 10.40 dollars, compared to the earlier forecast of 10.20 dollars to 10.50 dollars.

In the fourth quarter specifically, Abercrombie & Fitch anticipates net sales growth of approximately 5 percent, centering its previous 4 percent to 6 percent range. Operating margins for the period are expected to hold steady at around 14 percent, with diluted earnings per share projected between 3.50 dollars and 3.60 dollars. To bolster long-term success and shareholder value, the company confirmed it is on track to spend approximately 450 million dollars on share repurchases for the full year, with 100 million dollars of that activity occurring in the fourth quarter.

Looking ahead, the company plans to increase its capital expenditures to approximately 245 million dollars, up from a previous estimate of 225 million dollars. This investment will fund significant physical and digital expansions, including 60 new store openings, 40 remodels, and various technological initiatives.

Horowitz emphasized that the brand remains healthy and well-positioned to leverage its operating model to reach new global customers through both owned operations and new go-to-market partnerships, even as the company navigates a shifting macroeconomic and geopolitical landscape.