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May 03
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%.
Abercrombie & Fitch
Abercrombie & Fitch
Abercrombie & Fitch Revenue by Segment
Abercrombie & Fitch Revenue by Geographic Location
Revenue by Segment
Abercrombie Revenue
CapyFin.comHollister Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPAC Revenue
CapyFin.com 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