Abercrombie & Fitch Reports 16% Revenue Growth to $4.95 Billion for Fiscal Year 2025

Abercrombie & Fitch Co. reported a significant increase in financial performance for the fiscal year ending February 1, 2025, with net sales reaching $4.95 billion, a 16% increase from $4.28 billion in the previous fiscal year. The company's operating income also saw a substantial rise, climbing to $740.8 million, compared to $484.7 million in fiscal 2023, resulting in an operating margin of 15.0%, up from 11.3%. Net income attributable to Abercrombie & Fitch was $566.2 million, or $10.69 per diluted share, compared to $328.1 million, or $6.22 per diluted share, in the prior year.

The company experienced notable growth across its geographic segments, with the Americas segment generating $4.03 billion in sales, a 17% increase, while the EMEA and APAC segments reported sales of $770.5 million and $150.6 million, respectively. The EMEA segment's sales grew by 12%, and the APAC segment saw a 9% increase. Comparable sales, which exclude the impact of store closures, rose by 17% overall, reflecting strong consumer demand and effective marketing strategies.

Strategically, Abercrombie & Fitch has been focused on its "Always Forward Plan," which emphasizes digital transformation and omnichannel retailing. The company opened 65 new stores during the fiscal year while closing 41, resulting in a total of 789 retail locations as of February 1, 2025. The company also continues to invest in its digital infrastructure, with over 87% of its digital traffic coming from mobile devices. This digital focus is complemented by the company's loyalty programs, which have been instrumental in driving customer engagement and repeat business.

Operationally, Abercrombie & Fitch employed approximately 39,200 associates globally, with a significant portion being part-time workers. The company has also made strides in managing its inventory effectively, utilizing an agile inventory model to respond to changing consumer demands. The company reported a decrease in cost of sales as a percentage of net sales, attributed to higher average unit retail prices and reduced promotional activity.

Looking ahead, Abercrombie & Fitch anticipates continued growth, although it acknowledges potential challenges from macroeconomic conditions, including inflation and geopolitical uncertainties. The company plans to maintain its focus on executing its growth strategies while managing costs effectively to sustain profitability. The outlook remains positive, with expectations for further investments in digital capabilities and store experiences to enhance customer engagement and drive sales.