Abercrombie & Fitch Co. Reports Third Quarter Fiscal 2025 Results

Core Insights - Abercrombie & Fitch Co. reported record third quarter net sales of $1.3 billion, reflecting a 7% increase compared to the previous year, marking the 12th consecutive quarter of growth [5][6][24] - The Hollister brand experienced significant growth of 16%, while Abercrombie brands saw a decline of 2% [5][7] - The company achieved an operating margin of 12.0%, with earnings per diluted share of $2.36, which exceeded expectations [5][6][24] Financial Performance - Net sales by segment for the third quarter were as follows: Americas at $1,057.4 million (up 7%), EMEA at $194.5 million (up 7%), and APAC at $38.7 million (down 6%) [4][7] - Operating income was reported at $155 million, down from $179 million in the previous year, resulting in an operating margin decrease from 14.8% to 12.0% [6][24] - Year-to-date share repurchases totaled $350 million, representing 9% of shares outstanding at the beginning of the year [5][9] Outlook - The company narrowed its full-year outlook to net sales growth of 6% to 7% and net income per diluted share in the range of $10.20 to $10.50 [5][17] - For the fourth quarter, the company anticipates net sales growth in the range of 4% to 6% and an operating margin around 14% [13][17] Cash Flow and Liquidity - As of November 1, 2025, the company had cash and equivalents of $606 million, down from $773 million at the beginning of the year [12][39] - The company reported net cash provided by operating activities of $313 million, while net cash used for investing activities was $95 million [12][41] Inventory and Capital Allocation - Inventories increased to $730 million compared to $575 million at the beginning of the year [12][39] - The company has $950 million remaining on its share repurchase authorization established in March 2025 [9][12]