Abercrombie & Fitch Co. has reported its first quarter fiscal 2025 results, showcasing an 8% increase in net sales compared to the same period last year. The company achieved record first quarter net sales of $1.1 billion, with growth seen across regions, including a 7% increase in the Americas, 12% in EMEA, and 5% in APAC.
The brand performance was highlighted by Hollister Brands' remarkable 22% growth, while Abercrombie Brands experienced a 4% decline compared to the previous year. The company exceeded its expectations on the bottom line with an operating margin of 9.3% and earnings per share of $1.59. Additionally, Abercrombie & Fitch Co. repurchased 2.6 million shares for $200 million during the quarter, representing 5% of shares outstanding at February 1, 2025.
Net sales by segment and brand family for the first quarter showed interesting insights. In terms of segments, the Americas saw a 7% increase, EMEA jumped by 12%, and APAC grew by 5%. On the other hand, Abercrombie brands experienced a 4% decline, while Hollister exhibited a substantial 22% growth compared to the previous year.
Looking at the financial position and liquidity, as of May 3, 2025, the company had $511 million in cash and equivalents, marketable securities of $97 million, and inventories of $542 million. The company's borrowing capacity stood at $477 million, with net borrowing available of $429 million.
The company's cash flow and capital allocation during the year-to-date period ended May 3, 2025, indicated net cash used for operating activities of $4 million, net cash used for investing activities of $31 million, and net cash used for financing activities of $235 million, primarily reflecting share repurchases.
In terms of the fiscal 2025 outlook, the company now expects a growth in net sales in the range of 3% to 6%, a decrease in operating margin from the previous outlook, and a higher effective tax rate of around 27%. The net income per diluted share is now expected to be in the range of $9.50 to $10.50, and the company is targeting share repurchases of $400 million.
These results and outlook signify Abercrombie & Fitch Co.'s ongoing efforts to navigate the current environment, focusing on top-line growth, store expansion, and investments in digital and technology to ensure sustainable long-term success. The company is set to conduct a conference call to provide additional details around its quarterly results and outlook for the second quarter. The market has reacted to these announcements by moving the company's shares -6.14% to a price of $83.04. For the full picture, make sure to review ABERCROMBIE & FITCH CO /DE/'s 8-K report.
