Abercrombie & Fitch reported net income of $515m versus $574m for the 52 weeks, while operating income fell to $699m from $741m.

While sales increased to $5.2bn from $4.9bn a year earlier, so too did costs, rising to $2bn from $1.8bn.

For the fourth quarter, net income fell to $174.7m from $189.7m, and operating income fell to $236m from $256m. Sales increased to $1.7bn from $1.6bn.

Fran Horowitz, chief executive officer, said, “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.

"Reflecting on fiscal 2025, I’m proud of our accomplishments. We delivered record net sales with 6% growth and achieved our third straight year of double-digit operating margins, all while continuing to strengthen the business through investments in marketing, stores, people, and digital capabilities. Supported by $619m in operating cash flow, we repurchased 5.4 million shares, representing 11% of shares outstanding at the beginning of the year, reinforcing our commitment to long-term value creation and shareholder returns.

"We entered fiscal 2026 with a strong foundation, including two globally relevant brands, a proven operating model, and a robust balance sheet, all managed by a world-class team. Our goals for 2026 are to grow net sales, deliver another year of double-digit operating margin and grow earnings per share, all while making strategic investments that will fuel our long-term global ambition.”

Going forward, A&F expects net sales growth in the range of 1%-3% for Q1 and 3%-5% for the full year.

It expects an operating margin of around 7% for Q4 and in the range of 12%-12.5% for the year.

And it expects net income per diluted share in the range of $1.20-1.30 for Q4 and $10.20-$11.00 for the full year.