Abercrombie & Fitch Co. has reported its second quarter fiscal 2025 results, marking its 11th consecutive quarter of growth. The company achieved record net sales of $1.2 billion, representing a 7% increase from the same period last year, and surpassing expectations. The net sales growth was primarily driven by an 8% increase in the Americas and a 12% increase in the APAC region, partially offset by a 1% decline in the EMEA segment.
Hollister Brands saw remarkable growth, achieving its best ever second quarter net sales with a 19% increase, while Abercrombie Brands experienced a 5% decline in net sales compared to the previous year.
The company's operating margin for the second quarter was reported as 17.1%, with earnings per share of $2.91, which includes a litigation settlement benefit of $39 million on a pre-tax basis, equating to a $0.59 per share benefit on a tax-adjusted basis.
Excluding the favorable litigation settlement impact, the adjusted operating margin for the second quarter was 13.9%, with adjusted earnings per share of $2.32, both of which exceeded the outlook.
In terms of financial position and liquidity, Abercrombie & Fitch Co. reported having cash and equivalents of $573 million, marketable securities of $31 million, and inventories of $593 million as of August 2, 2025. The company also disclosed a borrowing capacity of $500 million under the senior-secured asset-based revolving credit facility, with approximately $1.0 billion in liquidity.
The company's cash flow for the year-to-date period ended August 2, 2025, revealed net cash provided by operating activities of $113 million, net cash used for investing activities of $32 million, and net cash used for financing activities of $291 million, primarily driven by share repurchases.
Looking ahead, Abercrombie & Fitch Co. has increased its full-year net sales outlook and adjusted its profitability to incorporate an estimated $90 million net tariff cost impact.
The company's fiscal 2025 outlook now includes expectations of 5% to 7% net sales growth, an operating margin in the range of 13.0% to 13.5%, and an effective tax rate of around 30%. Additionally, the company anticipates net income per diluted share in the range of $10.00 to $10.50, with approximately $400 million allocated for share repurchases.
These figures reflect the company's confidence in its strong positioning and growth trajectory, building on record 2024 results, as stated by Fran Horowitz, the CEO of Abercrombie & Fitch Co. As a result of these announcements, the company's shares have moved -3.7% on the market, and are now trading at a price of $92.95. For more information, read the company's full 8-K submission here.
