Abercrombie & Fitch Co. extended its growth run in the final quarter of fiscal 2025, delivering higher revenue and capping a year of record sales as management highlighted continued investment in brand, stores and digital capabilities. For the quarter, Abercrombie & Fitch Q4 FY2025 net sales reached $1.67bn, a 5% increase versus the prior year, while comparable sales rose 1%.
Profitability moderated compared with last year’s strong finish. Operating income in the quarter came in at $236m, down from $256m a year earlier, and operating margin declined to 14.1% of sales from 16.2%.
Chief executive Fran Horowitz said the quarter marked another step in a multi-year streak of expansion and pointed to disciplined execution against the company’s outlook. “Our record fourth quarter net sales marked our thirteenth consecutive quarter of growth, with both operating margin and earnings per share at the high end of expectations we shared in early January. Reflecting on fiscal 2025, I’m proud of our accomplishments. We delivered record net sales with 6 per cent growth and achieved our third straight year of double-digit operating margins, all while continuing to strengthen the business through investments in marketing, stores, people, and digital capabilities. Supported by $619 million in operating cash flow, we repurchased 5.4 million shares, representing 11 per cent of shares outstanding at the beginning of the year, reinforcing our commitment to long term value creation and shareholder returns,” Horowitz said.
For fiscal 2025 as a whole, the retailer reported net sales of $5.27bn, up 6% year on year, with comparable sales growth of 3%. The company recorded operating income of $699m on a reported basis and $661m on an adjusted non-GAAP basis, compared with $741m of reported operating income in the prior year, according to the company.
Looking ahead, Horowitz said Abercrombie is entering fiscal 2026 with a solid platform and clear targets focused on growth, profitability and reinvestment. “We entered fiscal 2026 with a strong foundation, including two globally relevant brands, a proven operating model, and a robust balance sheet, all managed by a world class team. Our goals for 2026 are to grow net sales, deliver another year of double-digit operating margin and grow earnings per share, all while making strategic investments that will fuel our long-term global ambition,” added Horowitz.
With Abercrombie & Fitch Q4 FY2025 net sales again moving higher, the company is positioning its 2026 priorities around sustaining top-line momentum while continuing to invest in the capabilities it believes will support longer-term global expansion.