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Abercrombie & Fitch Co. Reports Record $1.3B Sales in Q3

Abercrombie & Fitch Co. has reported its third-quarter fiscal 2025 results, revealing a record net sales of $1.3 billion, marking a 7% increase from the same period last year. This marks the 12th consecutive quarter of growth for the company. The net sales growth was led by a 7% increase in the Americas and EMEA segments, partially offset by a 6% decline in the APAC segment.

The brand performance was highlighted by Hollister's growth of 16%, while Abercrombie's brands experienced a 2% decline. The operating margin stood at 12.0%, with earnings per diluted share of $2.36, surpassing the outlook range. The company also repurchased $100 million in shares in the quarter, bringing the year-to-date share repurchases to $350 million, representing 9% of shares outstanding at the beginning of the year.

Looking at the financial position and liquidity, the company had cash and equivalents of $606 million, marketable securities of $25 million, and inventories of $730 million as of November 1, 2025. This compares to $773 million, $116 million, and $575 million, respectively, as of February 1, 2025.

The company reported net cash provided by operating activities of $313 million, net cash used for investing activities of $95 million, and net cash used for financing activities of $395 million for the year-to-date period ended November 1, 2025. Additionally, the company repurchased 1.2 million shares for approximately $100 million during the third quarter of 2025, and 4.5 million shares for $350 million for the year-to-date period ended November 1, 2025, representing a 9% reduction in shares outstanding from the beginning of the year.

Looking ahead, Abercrombie & Fitch Co. has narrowed its full-year outlook to net sales growth of 6% to 7% and net income per diluted share of $10.20 to $10.50 for fiscal 2025. The company also expects around $450 million in share repurchases and diluted weighted average shares of around 48 million for the full year. In addition, the fourth-quarter outlook includes an expected net sales growth in the range of 4% to 6%, an operating margin around 14%, and net income per diluted share in the range of $3.40 to $3.70.

These figures demonstrate the company's strong performance and financial position, positioning it for continued growth and value creation for shareholders. As a result of these announcements, the company's shares have moved 5.43% on the market, and are now trading at a price of $95.14. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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