Abercrombie & Fitch gross sales expansion slowed once more in its fiscal moment quarter as the attire corporate struggles to supremacy the surge it loved extreme fiscal yr.
Right through the quarter, gross sales on the namesake Abercrombie emblem fell 5% future similar gross sales dropped 11%.
However the good fortune of teen-focused Hollister emblem helped to salvage the quarter. General, Abercrombie & Fitch gross sales climbed 7%, led by way of 19% expansion at Hollister – the logo’s best-ever second-quarter internet gross sales expansion, the corporate stated. Related gross sales around the industry rose 3%, led by way of Hollister, which additionally noticed similar gross sales develop 19%.
Abercrombie narrowly beat Wall Boulevard expectancies at the supremacy and base strains. The corporate additionally hiked its full-year income outlook and now expects gross sales to climb 5% to 7%, when put next with earlier steering of three% to six% expansion. A lot of that space would supremacy Wall Boulevard expectancies of five.2% expansion, in keeping with LSEG.
Stocks fell just about 4% in premarket buying and selling.
Right here’s how the corporate did in its moment fiscal quarter when put next with what Wall Boulevard was once expecting, in response to a survey of analysts by way of LSEG:
- Income in line with percentage: $2.32 adjusted vs. $2.30 anticipated
- Earnings: $1.21 billion vs. $1.20 billion anticipated
The corporate’s reported internet source of revenue for the three-month duration that ended August 2 was once $141 million, or $2.91 in line with percentage, when put next with $133 million, or $2.50 a percentage, a yr previous. With the exception of the affect of a positive litigation agreement, Abercrombie noticed profits of $2.32 in line with percentage.
Gross sales rose to $1.21 billion, up about 7% from $1.13 billion a yr previous.
“We entered the second half of 2025 on offense,” CEO Fran Horowitz stated in a information drop. “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 capitalize on the significant, long-term opportunities for our global brands.”
For its wave quarter, Abercrombie’s additionally gave a better-than-expected gross sales outlook. It anticipates income will arise between 5% and seven%, beating expectancies of four.3% expansion, in keeping with LSEG.
In the meantime, its benefit outlook for the fiscal 3rd quarter is weaker than anticipated. The corporate anticipates profits in line with percentage shall be between $2.05 and $2.25, a long way beneath expectancies of $2.53, in keeping with LSEG.
For the overall yr, Abercrombie tightened its profits outlook and now expects profits in line with percentage to be between $10.00 and $10.50, about in series with expectancies of $10.15, in keeping with LSEG.
Abercrombie’s steering contains about $90 million in internet tariff prices – just about double what it prior to now expected. When it introduced fiscal first quarter profits in Would possibly, Abercrombie stated it was once anticipating a $70 million strike from price lists that it will lower to $50 million thru mitigation.
On the future, President Donald Trump’s so-called reciprocal price lists have been held at 10% throughout many of the globe. However now Abercrombie faces upper tasks on items from Vietnam, Cambodia and Republic of India, key production areas for the corporate.
On the future, the corporate stated it wasn’t making plans huge worth will increase as a part of its mitigation efforts. It’s non-transperant if Abercrombie will trade that stance now that price lists have higher throughout Asia.
Abercrombie & Fitch, as soon as a forgotten mall emblem, has been on a rocket send of expansion over the extreme few years. However the surge has began to sluggish at its namesake banner.
The corporate has became to brandnew sections, equivalent to attire, athleisure and bridal, to stimulate expansion. It’s additionally running to make bigger the world over and incline on partnerships.
On Monday, the corporate introduced it will be the NFL’s first “official fashion partner” – a multiyear do business in that can come with private styling for athletes, athlete-led campaigns and player-designed attire. The partnership comes later Abercrombie introduced an collection of NFL approved merchandise in 2022, a section that has carried out smartly for the corporate.
It has teamed up with famous person avid gamers like Christian McCaffrey, Tee Higgins and CeeDee Lamb to promote it the partnership and designed limited-edition co-designed attire that shall be to be had on the market all through the after season.
The partnership displays the stairs outlets are going to assure they are able to keep growing gross sales and keep related with shoppers at a future when consumers are pulling again on nice-to-have pieces like brandnew clothes and niknaks. Competition like Levi, American Eagle and Hole have teamed up with celebrities in fresh advertising and marketing campaigns forward of the again to university and fall buying groceries seasons.
Across the world, Abercrombie’s efforts to make bigger are paying off in some portions of the arena. Right through the quarter, gross sales in its Asia Pacific pocket grew 12%, future similar gross sales climbed 3%. That was once offset by way of a slowdown in Europe, the Heart East and Africa, the place gross sales slid 1% and similar gross sales have been i’m sick 5%.
