Abercrombie & Fitch updates fiscal 2025 outlook with growth expectations

Abercrombie & Fitch Co. (NYSE: ANF) updated its financial outlook for the fourth quarter and full year of fiscal 2025, reporting record quarter-to-date net sales through December that aligned with company expectations.

The retailer now expects full-year net sales growth of at least 6%, compared to its previous guidance range of 6% to 7%. The company maintained its operating margin projection at around 13%, down from the previous range of 13.0% to 13.5%.

For the fourth quarter, Abercrombie projects net sales growth of around 5%, narrowing from its prior range of 4% to 6%. The company expects fourth-quarter earnings per diluted share between $3.50 and $3.60, compared to the previous range of $3.40 to $3.70.

Chief Executive Officer Fran Horowitz stated that Hollister Brands experienced strong holiday performance and is positioned to deliver mid-teens net sales growth for fiscal 2025. Abercrombie Brands is expected to grow net sales in the low single digits for the fourth quarter.

The company's full-year earnings per diluted share guidance was narrowed to $10.30 to $10.40, compared to the previous range of $10.20 to $10.50. Abercrombie expects to repurchase approximately $450 million in shares for the full year, with around $100 million in the fourth quarter.

Capital expenditures are projected at approximately $245 million, up from the previous estimate of $225 million. The company plans around 40 net store openings, consisting of 60 openings and 20 closures, along with 40 remodels.

The outlook incorporates an estimated $90 million impact from tariffs on imported goods, representing 170 basis points as a percentage of net sales. The projections also include a $39 million pre-tax benefit from a litigation settlement.

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