Abercrombie & Fitch Co. announced its fourth-quarter and full-year fiscal 2024 results on March 5, 2025. For the full year, net sales grew 16% to nearly $5 billion, with operating margin expanding to 15%, and operating income and EPS growing 53% and 72%, respectively. Fourth-quarter net income was $187 million, or $3.57 per share, on sales of $1.58 billion, up 9% year-over-year.
Despite the strong fiscal 2024 performance, the company issued a cautious outlook for fiscal 2025, forecasting sales growth of 3% to 5%, below analyst estimates of 6.8%. The operating margin for the current quarter is expected to be between 8% and 9%, lower than estimates of 12.8%. This guidance includes an estimated $5 million impact from tariffs on goods imported from China, Mexico, and Canada.
The slowdown was attributed to the Abercrombie brand, which saw sales grow only 2% in Q4, compared to Hollister's 16% jump. Comparable sales for Abercrombie rose 5%, while Hollister comps spiked 24%. CEO Fran Horowitz noted that Abercrombie brand sales decelerated into February and turned negative for the month, citing a "more normalized" transition into spring compared to a "flawless" one last year. The company also authorized a new $1.3 billion share repurchase program, replacing the prior 2021 authorization, and plans to spend $400 million on buybacks in 2025.
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