Abercrombie & Fitch (ANF) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of $4.95 billion in 2024, up 16% year-over-year, surpassing all 2025 financial targets from the Always Forward Plan.

• Operating margin expanded to 15.0%, a 370 bps increase, with net income per diluted share up 72% to $10.69.

• Both Abercrombie & Fitch and Hollister brands delivered double-digit net and comparable sales growth, adding millions of new customers.

• Americas led regional growth at 17%, with EMEA up 12% and APAC up 9%.

• Ended the year with no funded debt and returned excess cash to shareholders through share repurchases, including a new $1.3 billion authorization.

Financial highlights

• Q4 net sales were $1.58 billion, up 9% year-over-year, with 14% comparable sales growth and operating income of $256 million.

• Full-year operating income was $741 million, up 53%, and EPS was $10.69, up 72%.

• Full-year gross margin improved to 64.2% from 62.9% last year, driven by lower promotions.

• Free cash flow for the year exceeded $500 million.

• Cash and cash equivalents at year-end were $773 million, with total liquidity of $1.2 billion.

Outlook and guidance

• FY2025 net sales growth expected at 3% to 5%, with operating margin of 14% to 15% and EPS guidance of $10.40 to $11.40.

• Q1 2025 net sales expected to grow 4% to 6%, with operating margin of 8% to 9% and EPS of $1.25 to $1.45.

• Capital expenditures planned at $200 million, with around 40 net store openings and 40 remodels.

• $400 million in share repurchases planned for 2025.

• Guidance includes estimated impact from new tariffs on imports from China, Mexico, and Canada.