Rising Costs Ahead: Can Abercrombie Hold the Line on Margins?

Key Takeaways ANF reported record Q1 net sales of $1.1B, up 8% year over year, but gross margin fell 440 basis points. Gross margin pressures stemmed from high freight costs and winter inventory markdowns at Abercrombie brand. Hollister's 22% sales jump helped offset Abercrombie's 4% decline and lifted overall brand performance.Abercrombie & Fitch Inc. (ANF) entered the first quarter of fiscal 2025 with strong sales momentum but with a strain on gross margins. Despite posting record net sales of $1.1 bill ...