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May 03, 2025
Abercrombie & Fitch Q1 2025 Earnings Report
Abercrombie & Fitch reported strong first quarter performance with record net sales driven by Hollister’s growth.
Key Takeaways
Abercrombie & Fitch posted an 8% increase in revenue and exceeded profit expectations, with Hollister achieving its best-ever Q1 sales. Despite a decline in Abercrombie brand sales, overall net income and EPS were solid.
Record net sales of $1.1 billion, led by Hollister's 22% growth.
EPS reached $1.59, with operating income of $101.5 million.
Net income attributable to A&F totaled $80.4 million.
Repurchased $200 million in shares, reducing outstanding shares by 5%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects continued growth in fiscal 2025, though at a moderated pace with slightly lowered margin and EPS expectations.
Positive Outlook
- FY25 net sales projected to grow 3% to 6%
- Approximately 40 new net store openings planned
- Capital expenditures steady at $200 million
- Share repurchases expected to reach $400 million
- Digital and tech investments continue to support long-term growth
Challenges Ahead
- Lowered FY25 operating margin guidance to 12.5%-13.5%
- EPS guidance reduced to $9.50–$10.50
- Second quarter margin forecasted to be below prior levels
- Higher tax rate of ~27% expected for FY25
- Liquidity decreased to $940 million from $1.2 billion in prior periods
Historical Earnings Impact
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Avg. Return Before/After Earnings
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