Abercrombie and Fitch reports strong Q4, slower growth ahead
Abercrombie & Fitch Covent Garden Credits: Abercrombie & Fitch Despite apparel retailer Abercrombie & Fitch reporting a strong fourth quarter with net sales growth of 9 percent to 1.58 billion dollars, comparable sales growth of 14 percent, and earnings per share of 3.57 dollars, the company's 2025 outlook signals a deceleration in growth. The company has projected net sales growth of 3 percent to 5 percent, operating margin between 14 percent and 15 percent, and net income per diluted share ranging from 10.40 dollars to 11.40 dollars for the upcoming year, falling short of Wall Street expectations. During the fourth quarter, Abercrombie brand sales grew by just 2 percent, while Hollister sales surged 16 percent. Comparable sales for Abercrombie increased by 5 percent versus Hollister's comparable sales growth of 24 percent. CEO Fran Horowitz noted on an analyst call that Abercrombie brand sales decelerated into February and turned negative for the month. “Last year we did have a bit of a flawless transition into spring, and this year it’s a bit more normalized. The company’s sales are positive for the month of February, seeing a little bit of a difference between the brands. Hollister came in very strong off of a very, very strong Q4 and Abercrombie is a bit negative,” Horowitz explained. For the full year 2024, net sales reached 4.95 billion dollars, reflecting a 16 percent increase driven by 17 percent comparable sales growth across regions and brands. Abercrombie brands achieved full-year net sales growth of 16 percent with comparable sales up 15 percent, while Hollister brands grew net sales by 15 percent with comparable sales up 19 percent. The company's operating margin for the year was 15 percent, a 370 basis point increase, and net income per diluted share jumped 72 percent to 10.69 dollars compared to 2023.
Despite apparel retailer Abercrombie & Fitch reporting a strong fourth quarter with net sales growth of 9 percent to 1.58 billion dollars, comparable sales growth of 14 percent, and earnings per share of 3.57 dollars, the company's 2025 outlook signals a deceleration in growth.
The company has projected net sales growth of 3 percent to 5 percent, operating margin between 14 percent and 15 percent, and net income per diluted share ranging from 10.40 dollars to 11.40 dollars for the upcoming year, falling short of Wall Street expectations.
During the fourth quarter, Abercrombie brand sales grew by just 2 percent, while Hollister sales surged 16 percent. Comparable sales for Abercrombie increased by 5 percent versus Hollister's comparable sales growth of 24 percent.
CEO Fran Horowitz noted on an analyst call that Abercrombie brand sales decelerated into February and turned negative for the month.
“Last year we did have a bit of a flawless transition into spring, and this year it’s a bit more normalized. The company’s sales are positive for the month of February, seeing a little bit of a difference between the brands. Hollister came in very strong off of a very, very strong Q4 and Abercrombie is a bit negative,” Horowitz explained.
For the full year 2024, net sales reached 4.95 billion dollars, reflecting a 16 percent increase driven by 17 percent comparable sales growth across regions and brands. Abercrombie brands achieved full-year net sales growth of 16 percent with comparable sales up 15 percent, while Hollister brands grew net sales by 15 percent with comparable sales up 19 percent. The company's operating margin for the year was 15 percent, a 370 basis point increase, and net income per diluted share jumped 72 percent to 10.69 dollars compared to 2023.
