Abercrombie & Fitch beats estimates, shares rise

Investing.com -- Abercrombie & Fitch Co. (NYSE: ANF) shares rose premarket on Wednesday after the clothing retailer reported fourth-quarter results that exceeded Wall Street expectations.

ANF posted adjusted earnings per share of $3.68, beating the analyst consensus of $3.58 by $0.10. Revenue reached $1.7 billion, slightly above the $1.67 billion estimate, marking a 5% increase from the prior year period.

The company's full year fiscal 2025 revenue climbed 6% YoY to $5.3 billion. However, the Abercrombie brand saw net sales decline 1% for the full year, while Hollister delivered record performance with 15% growth. Full year operating margin reached 13.3%, with net income per diluted share of $10.46.

Shares rose 4.8% following the announcement.

For fiscal 2026, Abercrombie provided guidance for EPS in the range of $10.20 to $11.00, with a midpoint of $10.60 that sits above the analyst consensus of $10.40. The company expects full year net sales growth of 3% to 5% and operating margin between 12.0% and 12.5%. First quarter EPS is projected at $1.20 to $1.30.

"Our record fourth quarter net sales marked our thirteenth consecutive quarter of growth, with both operating margin and earnings per share at the high end of expectations we shared in early January," said Fran Horowitz, Chief Executive Officer.

The company's fiscal 2026 outlook incorporates the estimated impact of a 15% tariff on all goods imported into the United States, effective February 24, 2026. Net of planned mitigation efforts, the tariff impact is expected to be approximately 290 basis points for the first quarter and 70 basis points for the full year.

Abercrombie generated $619 million in operating cash flow during fiscal 2025 and repurchased 5.4 million shares for $450 million, representing 11% of shares outstanding. The company plans around $450 million in share repurchases for fiscal 2026.

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