Abercrombie & Fitch Co. ANF posted sturdy third-quarter fiscal 2025 outcomes, whereby the highest and backside traces beat the Zacks Consensus Estimate. Moreover, on a year-over-year foundation, the corporate’s prime line elevated, however the backside line declined.
Abercrombie’s earnings per share (EPS) of $2.36 within the fiscal third quarter declined 4.5% from $2.47 within the year-ago quarter. Nevertheless, the underside line beat the Zacks Consensus Estimate of $2.14.
Web gross sales of $1.291 billion superior 7% yr over yr on a reported foundation and 6% on a constant-currency foundation. The highest line surpassed the Zacks Consensus Estimate of $1.275 billion. ANF’s comparable gross sales (comps) improved 3%. The highest-line beat was pushed by broad-based internet gross sales development throughout most areas and distinctive development at its Hollister model.
Abercrombie & Fitch Firm Worth, Consensus and EPS Shock
Abercrombie & Fitch Firm price-consensus-eps-surprise-chart | Abercrombie & Fitch Firm Quote
The corporate recorded three years of straight quarterly gross sales development, with file fiscal third-quarter internet gross sales. Hollister model was sturdy on a stable end to back-to-school and fall seasonal transition. Nevertheless, Abercrombie label made sequential progress in-line with administration’s expectations. ANF can also be managing stock. The corporate is about to supply seamless buyer experiences throughout manufacturers and areas, because it enters the vacation season. Shifting forward, Abercrombie raised the decrease finish of its internet gross sales and earnings outlook for fiscal 2025, citing sturdy momentum and continued confidence in its world manufacturers.
Therefore, ANF inventory has rallied greater than 25% within the buying and selling session following its earnings launch. Shares of this Zacks Rank #3 (Maintain) firm have gained 12.7% up to now six months towards the trade‘s 2.3% drop.
Abercrombie’s Regional & Model Gross sales Drive Development
Gross sales within the Americas elevated 7% yr over yr to $1.1 billion, EMEA gross sales grew 7% to $194.5 million and APAC gross sales dipped 6% to $38.7 million. Comps rose 4% within the Americas and a pair of% in EMEA whereas the metric was down 12% in APAC area.
Web gross sales fell 2% yr over yr to $617.3 million for the Abercrombie model. Furthermore, gross sales elevated 16% to $673.3 million at Hollister. The Abercrombie model contributed 47.8% to the whole firm gross sales, whereas Hollister contributed 52.2% to gross sales. Comps fell 7% for Abercrombie however grew 15% for Hollister within the quarter.
Our mannequin predicted gross sales development of 5.1% for the Abercrombie model and 5.6% for Hollister. We estimated gross sales to extend 5.3% within the Americas, 5.1% in EMEA and seven.5% in APAC.
ANF’s Quarterly Efficiency: Margins & Bills
Promoting bills have been $459.5 million, which rose 9.1% yr over yr. As a proportion of gross sales, promoting bills expanded 80 foundation factors (bps) to 35.6%. Common and administrative prices edged up 2.8% to $193.4 million, whereas the metric, as a proportion of gross sales, decreased 60 bps to fifteen%.
The corporate reported an working revenue of $155 million, down 12.6% from $177.4 million within the year-ago interval. It registered an working margin of 12%, down 260 bps from the year-ago quarter, regardless of a 210-bps opposed tariff influence.
ANF’s Monetary Well being
Abercrombie ended the fiscal third quarter with money and money equivalents of $605.8 million and stockholders’ fairness of $1.32 billion, excluding non-controlling pursuits.
The corporate had a liquidity of $1.1 billion on the finish of the fiscal third quarter, which included money and equivalents and borrowing obtainable beneath the ABL Facility. Web money supplied by working actions was $313 million as of Nov. 1, 2025.
Within the third quarter of 2025, the corporate repurchased about 1.2 million shares for roughly $100 million. 12 months so far by way of Nov. 1, 2025, a complete of 4.5 million shares have been purchased again for $350 million, lowering shares excellent from the beginning of the yr. ANF nonetheless has $950 million obtainable beneath the repurchase program approved in March 2025.
Abercrombie’s This fall & FY25 Outlook
For the fourth quarter of fiscal 2025, internet gross sales are projected to rise 4-6% from the $1.58 billion recorded within the year-ago interval. The working margin for the quarter is anticipated to be about 14%. It expects EPS to be within the band of $3.40-$3.70 in contrast with $3.57 reported within the year-ago quarter. The efficient tax price is anticipated to be about 30%. The outlook incorporates share repurchases of round $100 million and diluted weighted common shares of round 47 million.
For fiscal 2025, the corporate expects year-over-year gross sales development within the vary of 6-7% in contrast with 5-7% development anticipated earlier. This upside is prone to be backed by development throughout areas and types. ANF continues to anticipate an working margin within the band of 13-13.5%. Abercrombie estimates tariff price impacts, internet of deliberate mitigation actions, of $90 million or 170 bps as a p.c of internet gross sales for the fiscal yr.
For fiscal 2025, administration envisions weighted common shares of round $48 million, which displays the impacts of 2025 share repurchases of $450 million. Mixed with the tax price, ANF predicts EPS to be within the bracket of $10.20-$10.50 in contrast with the $10-$10.50 guided earlier.
Abercrombie anticipates an efficient tax price of round 30% for fiscal 2025. Capital expenditure is estimated to be $225 million for the present fiscal yr.
For fiscal 2025, Abercrombie plans 60 retailer openings, along with 40 remodels and rightsizes, and 20 closures.
Eye These Stable Picks in Retail
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, attire and equipment, carrying a Zacks Rank #2 (Purchase) at current. GCO delivered a trailing four-quarter earnings shock of 28.1%, on common. You’ll be able to see the whole listing of as we speak’s Zacks #1 Rank shares right here.
The Zacks Consensus Estimate for Genesco’s present fiscal-year EPS and gross sales signifies development of 71.3% and three.7%, respectively, from the year-ago interval’s reported figures.
5 Beneath FIVE, a specialty worth chain retailer, at present carries a Zacks Rank of two. FIVE delivered a median earnings shock of fifty.5% within the final 4 quarters.
The Zacks Consensus Estimate for 5 Beneath’s present financial-year gross sales signifies development of16.2% from the year-ago determine.
Ulta Magnificence ULTA, a way of life model, at present has a Zacks Rank of two. The corporate delivered a trailing four-quarter earnings shock of 16.3%, on common.
The Zacks Consensus Estimate for ULTA’s present financial-year gross sales signifies development of 6.8% from the year-ago determine.
Past Nvidia: AI’s Second Wave Is Right here
The AI revolution has already minted millionaires. However the shares everybody is aware of about aren’t prone to hold delivering the most important income. Little-known AI companies tackling the world’s largest issues could also be extra profitable within the coming months and years.
See “2nd Wave” AI shares now >>
Abercrombie & Fitch Firm (ANF) : Free Inventory Evaluation Report
Ulta Magnificence Inc. (ULTA) : Free Inventory Evaluation Report
Genesco Inc. (GCO) : Free Inventory Evaluation Report
5 Beneath, Inc. (FIVE) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
