Record-Breaking Revenue and Growth
Abercrombie & Fitch achieved their twelfth consecutive quarter of growth with sales up 7% to a record of $1.3 billion. Net sales and operating margin were at the high end of outlook, with earnings per share above expectations.
Strong Performance in Hollister Brand
Hollister brand reported a 16% net sales growth with comparable sales up 15%, showing balanced growth across categories and genders. The brand is performing exceptionally well with strong cross-channel traffic.
High Gross Margin and Operating Margin
The company delivered a gross margin of 62.5% and a 12% operating margin despite an adverse tariff impact of around 210 basis points.
Share Repurchase Program
Abercrombie & Fitch repurchased $100 million worth of shares in the quarter, totaling $350 million or 9% of shares outstanding since the beginning of the year.
Investment in AI and Technology
The company is enhancing customer service with AI agents and partnering with PayPal and Symbio to enable seamless AI-driven commerce transactions.