Core Insights - Abercrombie & Fitch Co. (ANF) reported strong third-quarter fiscal 2025 results, with both top and bottom lines exceeding Zacks Consensus Estimates, although the bottom line showed a year-over-year decline [1][10] Financial Performance - Earnings per share (EPS) for the fiscal third quarter was $2.36, a decrease of 4.5% from $2.47 in the same quarter last year, but above the Zacks Consensus Estimate of $2.14 [1][10] - Net sales reached $1.291 billion, reflecting a 7% year-over-year increase on a reported basis and a 6% increase on a constant-currency basis, surpassing the Zacks Consensus Estimate of $1.275 billion [2][10] - Comparable sales improved by 3%, driven by broad-based net sales growth across most regions and exceptional performance from the Hollister brand [2][3] Brand and Regional Performance - The Hollister brand saw a 16% increase in sales to $673.3 million, while Abercrombie brand sales fell 2% to $617.3 million [6] - Sales in the Americas increased by 7% to $1.1 billion, while EMEA sales also grew by 7% to $194.5 million; however, APAC sales dipped by 6% to $38.7 million [5] - Comparable sales rose by 4% in the Americas and 2% in EMEA, but fell by 12% in the APAC region [5] Margins and Expenses - Selling expenses increased by 9.1% year over year to $459.5 million, representing 35.6% of sales, an increase of 80 basis points [7] - General and administrative costs rose by 2.8% to $193.4 million, accounting for 15% of sales, a decrease of 60 basis points [7] - Operating income was reported at $155 million, down 12.6% from $177.4 million in the previous year, with an operating margin of 12%, a decline of 260 basis points [8] Financial Health - At the end of the fiscal third quarter, the company had cash and cash equivalents of $605.8 million and stockholders' equity of $1.32 billion [9] - The company reported liquidity of $1.1 billion, including cash and equivalents and available borrowing under the ABL Facility [11] Share Repurchase and Outlook - In Q3, the company repurchased approximately 1.2 million shares for about $100 million, with a total of 4.5 million shares repurchased year-to-date for $350 million [12] - For Q4 fiscal 2025, net sales are projected to rise by 4-6% from the previous year's $1.58 billion, with EPS expected between $3.40 and $3.70 [13] - For fiscal 2025, the company anticipates sales growth of 6-7%, an increase from the previously expected 5-7%, and an operating margin of 13-13.5% [14][15]