Abercrombie & Fitch Co. announced its first-quarter fiscal 2025 results on May 28, 2025, reporting record net sales of $1.10 billion, an 8% increase year-over-year, surpassing expectations. Net income for the quarter was $80.4 million, or $1.59 per share, compared to $114 million, or $2.14 per share, a year earlier. Hollister brands led the performance with 22% growth, achieving its best-ever first-quarter net sales.
Despite strong sales, the company cut its full-year earnings per share forecast to $9.50-$10.50, down from $10.40-$11.40, and revised its operating margin forecast to 12.5%-13.5% from 14%-15%. This reduction is primarily due to an estimated $50 million cost impact from tariffs, which includes a 30% tariff on imports from China and a 10% levy on goods from other countries.
Abercrombie brands' net sales were down 4% against 31% growth in the prior year, with comparable sales plunging 10%. CEO Fran Horowitz attributed this to working through winter carryover inventory and softer results in certain spring categories compared to a strong prior year. The company is pursuing mitigation strategies like supply chain diversification and vendor negotiations to offset tariff costs, with its sourcing from China now in the low single digits.
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