Record Annual and Quarterly Net Sales
Fiscal 2025 net sales reached a record ~$5.27 billion (management: $5.3B), up ~6% year-over-year; fourth quarter net sales were $1.67 billion, up 5% versus prior year.
Strong Brand and Channel Performance (Hollister Leadership)
Hollister delivered exceptional performance: fiscal 2025 net sales +15% and comparable sales +13% (management), and the brand produced its eleventh consecutive quarter of net sales growth; digital continued to scale, representing 44% of total sales.
Balanced Regional Growth
Fiscal 2025 growth was balanced across regions: Americas +7%, EMEA +6%, APAC +5%; Q4 regional net sales growth was Americas +5%, EMEA +8%, APAC +9% (Q4 comparable: Americas +2%, EMEA -3%, APAC ~flat).
Profitability and Cash Generation
Fourth quarter operating margin was 14.1% with operating income of $236 million; full-year operating margin around 12.5% (adjusted) with operating income $661 million. Management reported strong operating cash flow (~$600–$619 million) and free cash flow of $378 million.
Shareholder Returns and Capital Allocation
Returned $450 million to shareholders via share repurchases in 2025 (5.4M shares, ~11% of shares outstanding as of start of year); company expects to target ~$450 million of repurchases in 2026 as primary use of free cash flow.
Inventory Discipline and Read & React Model
Read & React inventory model enabled demand chasing while keeping inventories tightly controlled: year-end inventory at cost up ~5% (units up ~5%, ~3 points related to tariffs); units up mid-single-digits overall, supporting healthy AURs.