The company's third quarter sales growth was led by the Americas and the Europe, Middle East, and Africa (EMEA) region, each posting a 7% increase. However, sales in Asia-Pacific (APAC) declined by 6%.
When it comes to brands, Hollister recorded a 16% increase in net sales to $673.3m, fuelled by robust performance at the end of the back-to-school period and during the shift into the fall season. The Abercrombie brand, on the other hand, saw a 2% year-on-year decline to $617.3m.
Abercrombie & Fitch CEO Fran Horowitz said: “We achieved three years of consecutive quarterly sales growth, delivering record third quarter net sales, with 7% growth to last year. Hollister brands grew 16% on a strong finish to back-to-school and fall seasonal transition. Abercrombie brands made sequential progress in-line with our expectations, and we are tightly managing inventory as we aim for fourth quarter brand net sales to be approximately flat to last year’s record.”
Key metrics from Abercrombie & Fitch’s Q3 FY25 result
Abercrombie & Fitch registered operating income of $155m during the quarter ended 1 November 2025, down from $179.3m during the same quarter last year.
The lifestyle retailer’s operating margin in Q3 FY25 was 12.0% of sales, down from 14.8% a year earlier.
Net income dropped to $115m in Q3 FY25 from $133m in the previous year quarter, translating to diluted net income per share of $2.36, compared to $2.50 one year ago.
Inventories as of 1 November 2025 was $730m compared to $693m as of 2 November 2024.
Abercrombie & Fitch’s outlook for Q4 and FY25
Abercrombie & Fitch has revised its outlook for fiscal 2025, now expecting net sales growth between 6% and 7%, up from the previous guidance range of 5% to 7%.
The company anticipates an operating margin between 13.0% and 13.5%, an effective tax rate of around 30%, and net income per diluted share projected to be in the range of $10.20 to $10.50.
In the fourth quarter, the company expects net sales growth between 4% and 6% and an operating margin of approximately 14%.
Forecasted net income per diluted share for Q4 is expected to fall within the range of $3.40 to $3.70.
“As we enter the holiday season, our global teams are energised and ready to deliver exceptional experiences for our customers across brands and regions. We remain on track toward record net sales for fiscal 2025, on the foundation of consistent quarterly top-line growth, top-tier profitability, and healthy cash flow. Our results reinforce the strength of our operating model and give us confidence in our ability to drive sustainable, long-term shareholder value,” Fran Horowitz added.
