Abercrombie & Fitch’s second quarter results slightly exceeded Wall Street revenue expectations, with management crediting strong performance at Hollister and steady traffic across both digital and physical channels. CEO Fran Horowitz highlighted Hollister’s momentum, describing it as “an exciting time, with everything working across categories and genders.” Abercrombie, however, was impacted by lower average unit retail due to inventory clearance, a deliberate move to reset for future growth. Management also noted the continued benefit of new store openings and the positive response to brand activations, especially for Hollister’s heritage and Collegiate collections.
Is now the time to buy ANF? Find out in our full research report (it’s free).
Abercrombie and Fitch (ANF) Q2 CY2025 Highlights:
- Revenue: $1.21 billion vs analyst estimates of $1.20 billion (6.6% year-on-year growth, 1% beat)
- EPS (GAAP): $2.91 vs analyst estimates of $2.30 (26.6% beat)
- Adjusted EBITDA: $205.5 million vs analyst estimates of $197.9 million (17% margin, 3.8% beat)
- Revenue Guidance for Q3 CY2025 is $1.28 billion at the midpoint, above analyst estimates of $1.26 billion
- EPS (GAAP) guidance for the full year is $10.25 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 17.1%, up from 15.5% in the same quarter last year
- Locations: 807 at quarter end, up from 757 in the same quarter last year
- Same-Store Sales rose 3% year on year (18% in the same quarter last year)
- Market Capitalization: $4.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Abercrombie and Fitch’s Q2 Earnings Call
- Dana Telsey (Telsey Advisory Group) asked about Abercrombie’s path to growth given last year’s strong performance. CEO Fran Horowitz emphasized clean inventory, strong traffic, and new partnerships like the NFL, stating, “We are confident we’re on a path to improvement and expect to return to growth by year-end.”
- Corey Tarlowe (Jefferies) inquired about the drivers of Hollister’s exceptional momentum. Horowitz responded that staying “very close to our customer” and responding rapidly to trends drove success across categories and genders, with recent heritage and homecoming launches selling especially well.
- Matthew Boss (JPMorgan) questioned traffic trends and the outlook for Abercrombie’s comparable sales. CFO Robert Ball highlighted consistent traffic growth across channels and brands, with momentum carrying into back-to-school and early Q3. Horowitz added that lower average unit retail due to inventory clearance was the main drag on Abercrombie’s results.
- Paul Lejuez (Citi) asked about tariff mitigation and the outlook in Europe. Ball explained ongoing diversification of sourcing and vendor negotiations, noting these actions would take full effect in 2026. Horowitz cited ongoing investment in the U.K. and efforts to export successful strategies to Germany and other European markets.
- Adrienne Yih (Barclays) pressed on the impact of new tariffs and future price increases. Ball reiterated that the company does not expect broad-based ticket price hikes this year and is leveraging a tested playbook focused on value, supply chain shifts, and operational efficiencies to address evolving cost headwinds.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the impact of new product launches and brand activations—such as the NFL partnership and expanded denim campaigns—on traffic and sales, (2) Abercrombie’s return to growth as inventory resets take hold and promotional activity normalizes, and (3) the effectiveness of tariff mitigation strategies, including supply chain adjustments and vendor negotiations. Store expansion progress and the ramp of marketing investments will also be important markers of execution.
Abercrombie and Fitch currently trades at $91.75, down from $96.74 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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