Abercrombie sales growth slows again, but hollister surges 19%

Abercrombie & Fitch Sales Growth Slowed Again in its fiscal second Quarter as the Apparel Company Struggles to Top the surge It Enjoyed Last Fiscal Year.

DURING The Quarter, Sales at the Namesake Abercrombie Brand Fell 5% While Comparable Sales Dropped 11%.

But the success of teen-focused holister brand helped to salvage the Quarter. Overall, abercrombie & fitch sales Climbed 7%, LED by 19% Growth at Holister-The Brand’s Best-Ever Second-Quarter Net Sales Growth, The company said. Comparable sales across the business rose 3%, LED by HOLLISTER, which also Saw Comparable Sense Grow 19%.

Abercrombie Narrowly Beat Wall Street Expectations on the top and bottom lines. The company also hiked its full-yaar revneue outlook and now expects sales to Climb 5% to 7%, Compared with Previous Guidance of 3% to 6% Growth. Much of that range would top wall street expectations of 5.2% growth, according to lseg.

Shares Fell Nearly 4% in Premarket Trading.

Here’s how the company did in its second fiscal Quarter Compared with What Wall Street was anticipating, based on a survey of analysts by lseg:

• Earnings per share: $ 2.32 adjusted vs. $ 2.30 Expected
• Revenue: $ 1.21 billion vs. $ 1.20 Billion Expected

The company’s reported net income for the three-month period that ended August 2 was $ 141 million, or $ 2.91 per share, Compared with $ 133 Million, Or $ 2.50 A SHARE, A SARARLIARE. Excluding the impact of a favorite litigation settlement, abercrombie saw earnings of $ 2.32 per share.

Sales rose to $ 1.21 billion, up about 7% from $ 1.13 billion a year earlier.

“We entred the second half of 2025 on offense,” CEO Fran Hrowitz Said in a news release. “We are increasing our full year net sales outlook, reflecting our strong position and growth training, building on record 2024 results. OUR TEAM Remains Focused On Delivering for our customer Investing to capitalize on the significant, long-term options for our global brands. “

For its Current Quarter, Abercrombie’s also Gave a Better-That-The-Expend Sense Outlook. It anticipates revenue will risk 5% and 7%, beating expectations of 4.3% growth, according to lseg.

Meanwhile, Its Profit Outlook for the Fiscal Third Quarter is Weaker than expected. The company anticipates earnings per share will be between $ 2.05 and $ 2.25, far below expectations of $ 2.53, according to lseg.

Abercrombie said it expects its operating margin, a closly watched metric on wall street, to be betteren 11% and 12% during its current Quarter, also lower than wall stret experts of 13.3%, According to Streetaccount.

For the full year, abercrombie tightened its earnings outlook and now expects earnings per share to be betteren $ 10.00 and $ 10.50. That compares with a previous range of $ 9.50 to $ 10.50 per share.

Abercrombie’s guidance incorporates about $ 90 million in net tariff costs – Nearly double double what it is previously anticipated. When it announced fiscal first quarter earnings in may, abercrombie said it was expecting a $ 70 million hit from tarifs that it would reduce to $ 50 million third.

At the time, President Donald Trump’s So-Called Reciprocal Tarifs WRe Held at 10% Across Most of the Globe. But now abercrombie faces Higher duties on Goods from Vietnam, Cambodia and India, key manufacturing regions for the company.

At the time, the company said it wasn’t planning broad price increasing as part of its mitigation efforts. It’s Unclear If abercrombie will change that stance now that tariffs have increased across asia.

Abercrombie & Fitch, Once a forgotten Mall Brand, has been on a Rockt Ship of Growth over the last few years. But the surge has started to slow at its namesake banner.

The company has turned to new categories, such as dresses, athleisure and bridal, to stimulate growth. It’s also working to expand internationally and lean on partnerships.

On Monday, the company announced it would be the nfl’s first “official fashion partner”-a multiyar deal that will incline Apparel. The partnership come after abercrombie launched an assortment of nfl licensed products in 2022, a category that has performed well for the company.

It has said up with star players like Christian McCafrey, Tee Higgins and Ceedee Lamb to Advertise The Partnership and Designed Limited Limited-Nesigned Apparel THAT SALE BELL BE SALL BE SALE BEL SALE BELE BELE BELL BELL BELL BELL BELL BELL BELL BELL BELL BELL BELL BELL BET Upcoming Season.

The partnership reflects the steps retailers are taking to ensure they can continue to grow sales and stay relevant with consumors at a time when shoppers are pulling back on nice-to-toms likes Clothes and accessories. Competitors like Levi, American eagle and Gap Have Teamed up with celebrities in Recent Marketing Campaigns ahead of the back to school and fall shopping seasons.

Still, The Slowdown Raises Questions About How the Brand will grow in the Quarters Ahead, Especially as Competition Continues to Heat Up, Said Neil Saunders, MANAGING DIRECTOR OCE Globaldaata, in A Note.

“Better numbers … Overseas expansion of the brand, “said saunders. “Our Recent Channel Checks at New Stores in London WERE WERE POSITIVE, Although We Believe The Stores Can Reach A Higher Potential Once the Consumer Economy in the Consumer Economy in the Uk Strengthens.”

Internationally, abercrombie’s efforts to expand are paying off in some parts of the world. DURING The Quarter, Sales in Its Asia Pacific Region Grew 12%, While Comparable SAles Climbed 3%. That was offset by a slowdown in europe, the middle East and Africa, Where Slid Slid 1% and Comparable SALES WERE DOWN 5%.

Abercrombie has also started to expand into wholesale for its abercrombie kids brand. The company has a very small share of the overall market, which was worth $ 82.1 billion last year, saunders said.

“This Leaves Considerable Headroom for Growth,” said saunders. “Expanding Through Wholesale is a Sensible Strategy: It provides relatively fast access to new customers and requires far less capital than opening addition to additional stores Relatively Few. “