ABERCROMBIE & FITCH CO /DE/ has recently released its 10-K report. Through its subsidiaries, the company operates as an omnichannel retailer across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It sells apparel, personal care products, and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, Your Personal Best, Hollister, and Gilly Hicks brands, through stores, wholesale, franchise, licensing, and e-commerce channels. Founded in 1892 and headquartered in New Albany, Ohio, the company continues to rely on a mix of physical and digital sales to reach customers.
In Item 7, management says its discussion and analysis is intended to help investors evaluate operating performance by excluding items it believes may not reflect future operating outlook, while also improving comparability across periods. The company uses non-GAAP measures such as comparable sales, adjusted operating income, adjusted net income, adjusted EPS, constant-currency results, EBITDA, and adjusted EBITDA as supplements to GAAP results, not replacements. Comparable sales are defined as the year-over-year change in net sales from stores open at least one year with limited square-footage changes, plus digital net sales, both adjusted for currency effects; the metric excludes revenue other than store and digital sales.
For fiscal 2025, net sales were $5.266 billion, up from $4.949 billion in fiscal 2024, a 6% increase on both a GAAP and constant-currency basis. Operating income was $699.1 million, down from $740.8 million, while adjusted non-GAAP operating income was $660.6 million after excluding $38.6 million of litigation settlement expense tied to payment card interchange fee claims. Net income attributable to A&F was $515.0 million, compared with $574.0 million a year earlier, and diluted EPS was $10.46 versus $10.69.
On a constant-currency basis, adjusted non-GAAP net income per diluted share was $9.86 in fiscal 2025 versus $10.60 in fiscal 2024. EBITDA fell to $854.2 million from $894.6 million, and adjusted EBITDA was $815.6 million, equal to 15.5% of net sales, compared with $894.6 million, or 18.1%, in the prior year. The company also reports that interest income and expense, net, was a $21.6 million benefit in fiscal 2025, compared with a $27.9 million benefit in fiscal 2024, while depreciation and amortization totaled $155.0 million versus $153.8 million. Following these announcements, the company's shares moved -3.24%, and are now trading at a price of $104.13. For the full picture, make sure to review ABERCROMBIE & FITCH CO /DE/'s 10-K report.
