Abercrombie & Fitch Co.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 26 November 2025: press release. Guidance figures: 3 raised, 1 lowered, 7 new, 6 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales up 7% to record Q3: Net sales were $1.3 billion, up 7% from last year, with comparable sales up 3%. The company reported a 12th consecutive quarter of growth. Source
• Diluted EPS exceeded stated range: Diluted EPS was $2.36 against $2.50 a year earlier. Management said this exceeded its stated range for the quarter. Source
• APAC net sales declined 6%: APAC net sales were $38,661 thousand, down 6%, with comparable sales down 12%. APAC was the only segment with a decline. Source
• Hollister brands up 16%: Hollister brands net sales were $673,274 thousand, up 16%, with comparable sales up 15%. Management said the brands finished back-to-school and fall strongly. Source
• Abercrombie brands down 2%: Abercrombie brands net sales were $617,345 thousand, down 2%, with comparable sales down 7%. Management said the brands made sequential progress. Source
• Tariffs cost 210 basis points: Management said the 12.0% operating margin included investments in marketing, digital and technology and 210 basis points of adverse tariff impact. Source
• Inventories rose to $730 million: Inventories were $730,453 thousand at November 1, 2025, against $692,596 thousand a year earlier and $575,005 thousand at February 1, 2025. Source
• Full-year guidance replaced in full: Management said the new full-year guidance replaces all previous full-year guidance. Source

“We achieved three years of consecutive quarterly sales growth, delivering record third quarter net sales, with 7% growth to last year.”

Fran Horowitz, Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year net sales growth range narrowed to 6% to 7% from 5% to 7%. Source
• Guidance raised: Full-year diluted EPS range raised at the low end, to $10.20 to $10.50 from $10.00 to $10.50. Source
• Guidance raised: Full-year share repurchases raised to about $450 million from about $400 million. Source
• Guidance lowered: Full-year diluted weighted average shares lowered to about 48 million from about 49 million. Source
• New guidance: Fourth-quarter guidance provided for net sales growth, operating margin, tax rate, EPS, share repurchases and diluted shares. Source
• Guidance kept: Full-year operating margin, effective tax rate, capital expenditures and store plans unchanged from the prior release. Source

Results and growth drivers

• Net sales up 7% to record Q3: Net sales were $1.3 billion, up 7% from last year, with comparable sales up 3%. The company reported a 12th consecutive quarter of growth. Source
• Operating income and margin declined: Operating income was $155 million against $179 million a year earlier. Operating margin was 12.0% against 14.8%. Source
• Diluted EPS exceeded stated range: Diluted EPS was $2.36 against $2.50 a year earlier. Management said this exceeded its stated range for the quarter. Source
• Year-to-date EPS below prior year: Year-to-date diluted EPS was $6.83 against $7.13 a year earlier, on a GAAP basis. Source
• Constant-currency sales grew 6%: On a constant currency basis, net sales were $1,290,619 thousand, up 6% from $1,214,800 thousand. Reported growth was 7%. Source

Segments and regions

• Americas and EMEA each up 7%: Americas net sales were $1,057,448 thousand, up 7%, with comparable sales up 4%. EMEA net sales were $194,510 thousand, up 7%, with comparable sales up 2%. Source
• APAC net sales declined 6%: APAC net sales were $38,661 thousand, down 6%, with comparable sales down 12%. APAC was the only segment with a decline. Source

“On the bottom line, we delivered a 12.0% operating margin including important investments in marketing, digital and technology, in addition to 210 basis points of adverse tariff impact.”

Fran Horowitz, Chief Executive Officer

Brands: Hollister and Abercrombie

• Hollister brands up 16%: Hollister brands net sales were $673,274 thousand, up 16%, with comparable sales up 15%. Management said the brands finished back-to-school and fall strongly. Source
• Abercrombie brands down 2%: Abercrombie brands net sales were $617,345 thousand, down 2%, with comparable sales down 7%. Management said the brands made sequential progress. Source
• Hollister now larger than Abercrombie: Hollister brands were $673,274 thousand of quarterly net sales against $617,345 thousand for Abercrombie brands, the reverse of the prior-year order. Source

Costs, margins and tariffs

• Tariffs cost 210 basis points: Management said the 12.0% operating margin included investments in marketing, digital and technology and 210 basis points of adverse tariff impact. Source
• Cost of sales rose as share of sales: Cost of sales, excluding depreciation and amortization, was 37.5% of net sales against 34.9% a year earlier. Source
• Selling and G&A ratios moved: Selling expense was 35.6% of net sales against 34.8%. General and administrative expense was 15.0% against 15.6%. Source
• Settlement lifts year-to-date margin: Year-to-date GAAP operating margin was 12.9%, including a litigation settlement benefit. The company's adjusted margin excluding it was 11.8%. Source

“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.”

Fran Horowitz, Chief Executive Officer

Inventory, cash and liquidity

• Inventories rose to $730 million: Inventories were $730,453 thousand at November 1, 2025, against $692,596 thousand a year earlier and $575,005 thousand at February 1, 2025. Source
• Cash lower than a year earlier: Cash and equivalents were $606 million, against $683 million a year earlier. Liquidity including ABL borrowing availability was about $1.1 billion. Source
• Year-to-date operating cash flow: Year-to-date net cash from operating activities was $313 million. Investing used $95 million, mainly capital expenditures, partly offset by securities maturities. Source
• Financing outflow mainly repurchases: Year-to-date financing activities used $395 million, primarily for share repurchases. Depreciation and amortization was $115 million for the year to date. Source

Share repurchases and returns

• Third-quarter repurchases of $100 million: The company repurchased 1.2 million shares for about $100 million in the third quarter. Management described this as its seventh consecutive quarter of repurchases. Source
• Year-to-date repurchases reach $350 million: Year-to-date repurchases were 4.5 million shares for $350 million, a 9% reduction in shares outstanding from the start of the year. Source
• Authorization remaining of $950 million: The company has $950 million remaining on the share repurchase authorization established in March 2025. Source

Stores and capital spending

• About 830 stores operated: The company operates approximately 830 stores across North America, Europe, Asia and the Middle East, up from approximately 810 in the prior release. Source
• Real estate plan unchanged: Planned store activity for the year is about 40 net openings, 60 openings, 20 closures and 40 remodels or right-sizes, unchanged from the prior release. Source
• Property spending up year on year: Year-to-date purchases of property and equipment were $185,212 thousand, against $132,040 thousand a year earlier. Source

Guidance replaced and tariff basis

• Full-year guidance replaced in full: Management said the new full-year guidance replaces all previous full-year guidance. Source
• Tariff basis dated November 21: Guidance includes tariffs as of November 21, 2025, and excludes any later trade policy changes by the United States or other countries. Source
• Repurchase timing depends on conditions: Per-share guidance includes potential repurchases. Timing and amount depend on market conditions, the share price, legal requirements and other factors. Source

Coming up, as management said on 26 November 2025

• Holiday season trading ahead: Management said its global teams are energized and ready to deliver exceptional customer experiences as the holiday season begins. Source

Figures management reported

Risks management discussed

• Regulatory: Management said guidance excludes potential future trade policy changes by the United States or other countries, beyond the tariffs now in effect. Source
• Financial: Management said the effective tax rate is sensitive to jurisdictional mix and level of income, and excludes potential future tax policy changes. Source
• Demand: Management named APAC as the segment that partly offset growth in the other two segments this quarter. Source

Earlier plans management reported on

• On track: Management said it remains on track toward record net sales for fiscal 2025. Source
• Ahead: The company said third-quarter diluted EPS of $2.36 was above its stated range for the quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.