Abercrombie & Fitch delivers sales growth but signals a slowdown in 2025
Abercrombie & Fitch has reported a 16% increase in net sales for the financial year to 1 February 2025, reaching $4.95bn (£3.85bn).
Abercrombie & Fitch has reported a 16% increase in net sales for the financial year to 1 February 2025, reaching $4.95bn (£3.85bn).
The fashion retailer also saw a 15% year-on-year rise in operating income, totalling $740.8m (£575.7m).
For the EMEA region, which includes the UK, net sales grew by 12% to £770m ($599m), marking it as the second-fastest growing global segment after the Americas. This performance comes amid a competitive retail environment in the UK.
However, the company has set more modest expectations for 2025, projecting net sales growth of 3% to 5%, below analysts’ expectations of 6.8%. While operating margins are expected to be between 14% and 15%,.
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For the fourth quarter of FY24, the American fashion retailer reported a 9% increase in net sales to $1.58bn (£1.24bn), with comparable sales up 14%. Abercrombie’s comparable sales grew by just 5%, while Hollister performed better, with a 24% increase in comparable sales.
CEO Fran Horowitz noted that the Abercrombie brand experienced a slowdown, with sales turning negative in February, while Hollister remained strong following a successful Q4.
Despite these challenges, Abercrombie & Fitch is aiming to expand its UK presence, with plans to open between eight and 10 new stores by the end of 2025.
Horowitz said: “We enter fiscal 2025 with highly relevant brands, an agile playbook, and a motivated global team driven by a culture of innovation and growth.
“Our expectation in 2025 is to build on the past two years of outstanding results and again deliver profitable growth while strengthening our brands and operating model.”
Last June, Abercrombie & Fitch said it was on course for a second consecutive year of double-digit sales growth for the first time in over a decade as its 90s fashion resurgence continues to bear fruit.
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