Abercrombie & Fitch Co. (NYSE: ANF) reported fourth-quarter results that exceeded Wall Street expectations, though shares declined more than 3% intra-day Wednesday.
The apparel retailer posted adjusted earnings per share of $3.68, beating analyst forecasts of $3.58 by $0.10. Revenue totaled $1.7 billion, slightly above the $1.67 billion consensus estimate and representing a 5% increase compared with the same period last year.
For the full fiscal year 2025, revenue rose 6% year over year to $5.3 billion. While the Abercrombie brand recorded a 1% decline in annual net sales, the Hollister brand delivered record results with 15% growth.
Full-year operating margin reached 13.3%, and net income per diluted share totaled $10.46.
Looking ahead to fiscal 2026, Abercrombie projected earnings per share between $10.20 and $11.00, with a midpoint of $10.60 above the analyst consensus of $10.40. The company expects net sales growth of 3% to 5% and an operating margin between 12.0% and 12.5%.
First-quarter earnings per share are expected to range from $1.20 to $1.30.
The company noted that its fiscal 2026 outlook includes the estimated impact of a 15% tariff on all goods imported into the United States, which took effect February 24, 2026. After mitigation efforts, the tariff is expected to reduce margins by approximately 290 basis points in the first quarter and about 70 basis points for the full year.
