Business expands its aggressive strategies following its eleventh straight quarter of financial growth
In a significant development, Abercrombie&Fitch, under the leadership of CEO Fran Horowitz, has announced its second-quarter results and revised forecasts for the full year.
The American clothing retailer concluded the second quarter with sales of $1,208 million, marking a substantial increase of more than 6.62% compared to the same period last year. This growth was driven by a record net sales figure in the second quarter. The net result for the quarter increased by 5.92%, although it remains 10% below the same period last year in the first half.
The company's growth trajectory is based on the record results of 2024. In the first half of the year, Abercrombie&Fitch's sales increased by 7.01% to $2,305 million. The group has recorded eleven consecutive quarters of growth, a testament to its resilience and adaptability in the dynamic retail landscape.
However, the net sales of the Abercrombie brands have evolved in the opposite direction compared to Hollister. While there was a 19% increase in interaction with teenage customers in the Hollister brands, the net sales of the Abercrombie brands decreased by 5% in the second quarter, after a 26% increase in the previous year.
Abercrombie&Fitch has raised its forecasts for the full year, estimating growth between 5% and 7%. The company attributes this growth to its offensive strategy as it enters the second half of 2025.
The company also estimates an impact of around $90 million due to U.S. tariffs on major textile production hubs worldwide. The main textile production regions considered by Abercrombie & Fitch in their forecasts, potentially impacting around 90 million USD, involve countries including Bangladesh, China, Vietnam, India, and Pakistan.
Despite these challenges, the operating result increased by 17% in the second quarter, and the operating margin for the full year is estimated to be between 13% and 13.5%. Abercrombie&Fitch has entered the second half of 2025 with a positive outlook and a focus on continuing to drive significant interaction with its teenage customers in the Hollister brands.
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