Abercrombie & Fitch (ANF) earnings Q3 2025

Abercrombie & Fitch Sees Surge in Stock Price Despite Slowing Growth of Namesake Brand

Abercrombie & Fitch, the American apparel retailer, has seen a significant surge in its stock price, with shares rising by 37% on Tuesday. This increase comes despite the company’s namesake brand experiencing a slowdown in growth. The brand’s sales fell by 2% during the fiscal third quarter, but this decline was more than offset by the strong performance of its Hollister brand, which saw sales climb by 16%.

The company’s overall sales rose by 7% to $1.29 billion, beating expectations. This growth was driven primarily by the success of Hollister, which has been a key driver of Abercrombie & Fitch’s revenue in recent quarters. The company’s CEO, Fran Horowitz, noted that Hollister’s sales are expected to continue driving growth in the current quarter, with the brand’s exciting campaigns and collaborations planned for the holiday season.

Financial Performance and Outlook

Abercrombie & Fitch reported net income of $113 million, or $2.36 per share, for the quarter ended November 1. This compares to $131.98 million, or $2.50 per share, in the same period last year. The company’s revenue rose to $1.29 billion, up from $1.21 billion a year earlier. For the holiday quarter, Abercrombie & Fitch expects companywide sales to climb between 4% and 6%, with earnings per share anticipated to be between $3.40 and $3.70.

The company’s full-year outlook is also positive, with sales expected to rise between 6% and 7%. This is largely in line with expectations, and the company remains focused on driving growth across its brands. Despite the slowdown in its namesake brand, Abercrombie & Fitch is investing in Hollister, with plans to open 25 new stores and refresh 35 others this year.

Brand Performance and Strategy

The Abercrombie brand has been a key driver of the company’s growth in recent years, but its sales have started to moderate. The brand’s sales fell to $617.35 million in the third quarter, with comparable sales declining by 7%. In contrast, Hollister’s revenue rose to $673.27 million, with comparable sales rising by 15%. The company is focused on driving growth at Hollister, with a range of exciting campaigns and collaborations planned for the holiday season.

CEO Fran Horowitz noted that the company is “just getting started” with Hollister, and that the brand has the right product to support sales throughout the season. The company is also investing in the Abercrombie brand, with a focus on bringing the brand back to growth. Despite the slowdown in the namesake brand, Abercrombie & Fitch remains confident in its ability to drive growth across its portfolio of brands.