Abercrombie & Fitch Co. reported a net sales increase of 6% for Fiscal 2025, reaching $5.27 billion compared to $4.95 billion in Fiscal 2024. The growth was driven by a combination of low-single-digit average unit retail (AUR) growth and mid-single-digit unit volume growth, particularly in the Americas segment, which saw a 7% increase in net sales. However, the company experienced a decline in operating income, which fell to $699.1 million from $740.8 million in the previous fiscal year, resulting in an operating margin of 13.3%, down from 15.0%. Net income attributable to Abercrombie & Fitch was $506.9 million, or $10.46 per diluted share, compared to $566.2 million, or $10.69 per diluted share, in Fiscal 2024.
The company faced several challenges during the fiscal year, including a significant impact from tariffs, which negatively affected operating income by approximately $90 million, or 170 basis points as a percentage of net sales. The adverse effects of tariffs were compounded by rising costs associated with inventory and supply chain disruptions. In response, Abercrombie & Fitch is implementing a multifaceted strategy to stabilize product and operating costs, which includes evaluating its sourcing footprint and adjusting pricing strategies.
Operationally, Abercrombie & Fitch opened 62 new stores, remodeled 47, and right-sized 11 locations during Fiscal 2025, while closing 22 stores. As of January 31, 2026, the company operated a total of 829 retail stores, with 635 in the Americas, 137 in EMEA, and 57 in APAC. The company also reported that approximately 89% of its digital traffic came from mobile devices, highlighting the importance of its digital channels in driving customer engagement and sales.
Looking ahead, Abercrombie & Fitch aims to continue its global growth by investing in owned-and-operated channels and expanding into new markets through franchise and wholesale partnerships. The company is also focused on enhancing its digital infrastructure and leveraging technology to improve operational productivity and customer experience. However, it remains cautious about the ongoing macroeconomic conditions, including inflation and geopolitical tensions, which could impact consumer spending and overall business performance in the upcoming fiscal year.
About ABERCROMBIE & FITCH CO /DE/
Abercrombie & Fitch Co. is a global, digitally-led omnichannel retailer specializing in apparel, personal care products, and accessories for men, women, and kids. With brands like Abercrombie and Hollister, the company targets diverse consumer segments across the Americas, EMEA, and APAC. Its strategic initiatives, including the Always Forward Plan, focus on digital transformation and enhancing customer experiences, positioning the company to capitalize on evolving market trends and consumer preferences.
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