Core Insights - Abercrombie & Fitch Co. (ANF) reported second-quarter fiscal 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, although year-over-year earnings per share (EPS) declined [1][9] - The company raised its full-year sales growth outlook to 5-7%, reflecting strong brand momentum and performance, particularly from the Hollister brand [3][15] Financial Performance - Abercrombie's EPS for the second quarter was $2.32, down 7.2% from $2.50 in the same quarter last year, but above the expected $2.27 [1][9] - Net sales reached $1.21 billion, a 7% increase year-over-year, surpassing the Zacks Consensus Estimate of $1.19 billion [2][9] - Comparable sales improved by 3%, driven by broad-based growth across regions and strong performance from Hollister, which saw a 19% increase in sales [2][8] Regional and Brand Performance - Sales in the Americas rose 8% to $974.2 million, while EMEA sales fell 1% to $197.2 million, and APAC sales increased 12% to $37.1 million [7] - The Abercrombie brand experienced a 5% decline in sales to $551.9 million, while Hollister's sales increased by 19% to $656.7 million [8] Profitability and Expenses - Abercrombie's gross margin contracted by 230 basis points year-over-year to 62.6%, while selling expenses decreased by 1.9% to $375.4 million [10] - Operating income increased by 17.7% to $206.7 million, with an operating margin of 17.1%, up 160 basis points from the previous year [11] Financial Health - The company ended the quarter with cash and cash equivalents of $572.7 million and no net long-term borrowings, indicating a stable financial position [12] - Abercrombie repurchased approximately 0.6 million shares for about $50 million in the second quarter, with a total of 3.2 million shares repurchased year-to-date for $250 million [13] Future Outlook - For the third quarter of fiscal 2025, Abercrombie projects net sales to rise 5-7% from the previous year's $1.21 billion, with an expected EPS range of $2.05-$2.25 [14] - The company anticipates a full-year operating margin of 13-13.5%, up from previous guidance, and plans to open 60 new stores while remodeling 40 and closing 20 [15][17]

Core Insights - Tapestry, Inc. (TPR) reported strong fourth-quarter fiscal 2025 results, surpassing Zacks Consensus Estimates for both revenues and earnings, with year-over-year increases in both metrics and an improvement in gross margin [1][3][12] Financial Performance - Adjusted earnings for the fiscal fourth quarter were $1.04 per share, exceeding the consensus estimate of $1.01 and reflecting a 13% increase from $0.92 in the prior year [3] - Net sales reached $1,723.2 million, beating the consensus estimate of $1,684 million, marking an 8.3% year-over-year increase and 8% growth on a constant-currency basis [4][11] - Consolidated gross profit was $1.32 billion, up 10.4% from the previous year, with a gross margin increase of 140 basis points to 76.3% [12] Brand Performance - Coach brand net sales were $1.43 billion, exceeding the consensus estimate of $1.39 billion, with a 14% year-over-year increase [7] - Kate Spade's sales were $252.6 million, falling short of the consensus estimate and reflecting a 13% decline [7] - Stuart Weitzman reported net sales of $45.5 million, surpassing estimates but showing a 10% year-over-year decrease [8] Customer Engagement - The company acquired 1.5 million new customers in North America, with Gen Z and Millennial consumers accounting for approximately 60% of new customers [5] - Direct-to-consumer revenues grew 6% on a constant-currency basis, driven by mid-teens growth in digital revenues [6] Regional Sales Insights - North American sales increased 8% year-over-year to $1.10 billion, while Greater China sales improved 18% to $273.9 million [9] - European markets showed a 13% revenue increase to $104.2 million, while Japan experienced a 7% decline [9] Future Guidance - For fiscal 2026, Tapestry projects revenues to be close to $7.2 billion, indicating low-single-digit growth from the prior year [23] - Earnings per share are forecasted to be between $5.30 and $5.45, reflecting a growth of 4-7% from the previous year [25]