Apparel retailer Abercrombie & Fitch's Q3 sales slightly beat estimates on Hollister strength

Overview

• Abercrombie & Fitch Q3 net sales rise 7% to $1.3 bln, slightly beating expectations

• Adjusted EPS for Q3 beats analyst expectations, reaching $2.36

• Company repurchased $100 mln in shares during Q3

Outlook

• Company narrows full-year net sales growth outlook to 6% to 7%

• Abercrombie & Fitch expects Q4 net sales growth between 4% and 6%

• Company forecasts fiscal 2025 EPS between $10.20 and $10.50

Result Drivers

• HOLLISTER GROWTH - Hollister brands grew 16% driven by strong back-to-school and fall seasonal transition

• REGIONAL PERFORMANCE - Net sales growth led by Americas and EMEA, both up 7%, offset by 6% decline in APAC

• INVESTMENTS IMPACT - Operating margin of 12.0% achieved despite 210 basis points of adverse tariff impact, supported by investments in marketing, digital, and technology

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Abercrombie & Fitch Co is $96.00, about 31.7% above its November 24 closing price of $65.61

Press Release: ID:nGNX79nrWG

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