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Jan 31
Abercrombie & Fitch Q4 2025 Earnings Report
Abercrombie & Fitch Q4 2025 Earnings Report
Key Takeaways
Abercrombie & Fitch delivered record Q4 net sales of $1.67 billion, representing 5% growth, though operating margins compressed to 14.1% from 16.2% in the prior year. The company achieved its thirteenth consecutive quarter of growth and significantly reduced its share count through $450 million in repurchases during the full fiscal year.
Record fourth quarter net sales of $1.67 billion, up 5% year-over-year.
Hollister brand family led growth in Q4 with a 6% increase in net sales and 3% comparable sales growth.
Operating margin for the quarter was 14.1%, down from 16.2% in the previous year's fourth quarter.
The company repurchased 0.9 million shares for approximately $100 million during the fourth quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For fiscal 2026, the company expects net sales growth of 3% to 5% and operating margins between 12.0% and 12.5%, factoring in significant tariff impacts.
Positive Outlook
- Full year net sales growth expected in the range of 3% to 5%.
- Anticipated full year operating margin of 12.0% to 12.5%.
- Planned opening of approximately 55 new stores.
- Expected share repurchases of around $450 million for the full year.
- Strategic investments in marketing, digital, and stores to fuel long-term ambition.
Challenges Ahead
- Estimated 15% tariff on all goods imported into the U.S. starting Feb 2026.
- Tariff impact expected to hit Q1 margins by approximately 290 basis points.
- Full year tariff impact estimated at 70 basis points of net sales.
- Q1 operating margin expected to be lower at around 7.0%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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