• Net Sales: $1.1 billion, up 8% year-over-year.

• Operating Margin: 9.3%.

• Earnings Per Share (EPS): $1.59.

• Share Repurchases: $200 million, totaling 5% of shares outstanding.

• Americas Sales Growth: 7%.

• EMEA Sales Growth: 12%.

• APAC Sales Growth: 5%.

• Hollister Net Sales Growth: 22%.

• Abercrombie Brands Net Sales Decline: 4%.

• Inventory Increase: 21% at cost.

• Cash and Cash Equivalents: $511 million.

• Marketable Securities: $97 million.

• Full Year Net Sales Growth Outlook: 3% to 6%.

• Full Year Operating Margin Outlook: 12.5% to 13.5%.

• Full Year EPS Outlook: $9.50 to $10.50.

• Capital Expenditures: Approximately $200 million.

• New Store Openings: Around 100 new experiences, including 60 new stores.

• Warning! GuruFocus has detected 3 Warning Sign with REX.

Release Date: May 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Abercrombie & Fitch Co (NYSE:ANF) reported record net sales of $1.1 billion for the first quarter, an 8% increase from the previous year, surpassing their expected growth range of 4% to 6%.

• The company achieved an operating margin of 9.3% and earnings per share of $1.59, both above the ranges provided in March.

• Hollister brand delivered record first-quarter results with 22% net sales growth, marking its 8th consecutive quarter of growth.

• Net sales growth was observed across all regions, with the Americas growing by 7%, EMEA by 12%, and APAC by 5%.

• Abercrombie & Fitch Co (NYSE:ANF) returned $200 million to shareholders through share repurchases, totaling 5% of shares outstanding at the beginning of the year.

Negative Points

• Abercrombie brands experienced a 4% net sales decline, with comparable sales down 10%, primarily due to lower AUR as they cleared seasonal carryover inventory.

• The company faced a reduction in full-year operating margin outlook due to an estimated 100 basis point impact from tariffs.

• Gross margin was negatively impacted by freight and carryover pressures, contributing to a 440 basis point decline in Q1.

• Abercrombie & Fitch Co (NYSE:ANF) anticipates a $50 million cost impact from tariffs for 2025, affecting their full-year operating margin outlook.

• The company is experiencing pressure on AUR, particularly in the Abercrombie brand, due to carryover inventory and competitive market conditions.

Q & A Highlights

Q: Can you provide more color on the outlook for Abercrombie's men's and women's lines and initiatives at Hollister? Also, what's new with the reduced store closures and remodels? A: Fran Horowitz, CEO: Abercrombie faced pressure due to carryover inventory, but our flexible model allows us to chase successful products like swimwear. We expect an inflection in Abercrombie's performance in the back half. Hollister had a strong quarter, driven by culturally relevant initiatives like the gradshop. On real estate, we're net store openers, planning 100 new experiences, with reduced closures due to successful landlord negotiations.