Abercrombie & Fitch Grows Sales 6% to $5.2bn, Cuts Operating Income to $699m
Abercrombie & Fitch reported fiscal 2025 net income of $515 m on sales of $5.2 bn, with operating income declining to $699 m as costs rose to $2 bn. The company generated $619 m in operating cash flow, repurchasing 5.4 m shares, while forecasting 3%–5% full-year sales growth and a 12%–12.5% operating margin.
1. Fiscal 2025 Results
Abercrombie & Fitch reported net income of $515 million for fiscal 2025, down from $574 million a year earlier, while sales rose 6% to $5.2 billion and operating income fell to $699 million from $741 million as costs climbed to $2 billion.
2. Fourth Quarter Performance
In the fourth quarter, net income decreased to $174.7 million from $189.7 million, operating income fell to $236 million from $256 million, and sales increased to $1.7 billion from $1.6 billion, marking the thirteenth consecutive quarter of net sales growth.
3. Cash Flow and Share Buybacks
The company generated $619 million in operating cash flow and repurchased 5.4 million shares, representing 11% of shares outstanding at the start of the year, reinforcing its focus on shareholder returns.
4. Fiscal 2026 Guidance
Abercrombie & Fitch expects net sales growth of 1%–3% for Q1 and 3%–5% for the full year, an operating margin of around 7% in Q4 and 12%–12.5% for the year, and diluted EPS of $1.20–$1.30 for Q4 and $10.20–$11.00 for fiscal 2026.