Fashion retailer Abercrombie & Fitch delivers strong results in the first quarter of 2025, with record net sales of $1.1 billion, marking an 8% increase year-over-year.
The strong performance was driven by a surge in sales from the Hollister brand, with net sales going up by 22% to $549.4 million, while its Abercrombie brand was down by 4% to $547.9 million.
However, the total net income went down by 29.4% to $80.4 million, and the company achieved earnings per share of $1.59 compared to $2.14 per share in the year prior.
Despite the successful quarter, the company adjusted its future outlook due to the potential headwinds from tariffs and expects to achieve a sales increase but a lower net income.
Fran Horowitz, Abercrombie’s CEO, said: “As we navigate the current environment, we have the team and proven capabilities in place to read, react, and adapt while continuing to deliver for customers globally.
“Importantly, with a strong foundation, we remain on offense and focused on top-line growth, store expansion, and investments in digital and technology that will enable sustainable long-term success.”
For the upcoming fiscal year, the company expects to achieve net sales growth of between 3% and 6% and earnings per share of between $9.50 and $10.50, down from the previous $10.40 to $11.40.
Other US retailers, including Macy’s, have also revised their guidance amid the mounting pressure from tariffs.
Fashion retailer American Eagle and footwear giant Crocs recently withdrew their guidance, citing economic uncertainty from tariffs as the reason behind their decision.
Click here to sign up to Retail Gazette‘s free daily email newsletter
