Abercrombie & Fitch Co. has reported its third quarter fiscal 2025 results, highlighting a record net sales of $1.3 billion, which is 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, partially offset by a 6% decline in APAC. The Hollister brand saw significant growth of 16%, while the Abercrombie brand experienced a 2% decline.
The operating margin was reported at 12.0%, with earnings per diluted share of $2.36, which exceeded the outlook range. The company also repurchased $100 million in shares during the quarter, with year-to-date share repurchases totaling $350 million, representing 9% of shares outstanding at the beginning of the year.
The company 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.
In terms of financial position and liquidity, as of November 1, 2025, the company had cash and equivalents of $606 million, marketable securities of $25 million, and inventories of $730 million. The borrowing capacity under the senior-secured asset-based revolving credit facility stood at $500 million, with net borrowing available of $450 million. The company's liquidity, comprising cash and equivalents and borrowing available, was approximately $1.1 billion.
The company's cash flows for the year-to-date period ended November 1, 2025, included 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, primarily reflecting share repurchases.
Looking ahead to the full fiscal year 2025, the company revised its outlook, expecting net sales growth in the range of 6% to 7%, operating margin in the range of 13.0% to 13.5%, and net income per diluted share in the range of $10.20 to $10.50. The company also provided details on its capital allocation, including share repurchases and capital expenditures.
The company will be conducting a conference call to provide additional details around its quarterly results and its outlook for the fourth quarter. The presentation of the third-quarter results will be available in the "Investors" section at corporate.abercrombie.com.
These results indicate Abercrombie & Fitch Co.'s continued growth and financial performance in the third quarter of fiscal 2025, with strategic investments and efforts to drive sustainable long-term shareholder value. The market has reacted to these announcements by moving the company's shares 5.43% to a price of $95.14. If you want to know more, read the company's complete 8-K report here.
