Abercrombie & Fitch reports lower profit despite record sales

US apparel group Abercrombie & Fitch Co. set a new sales record in the 2025/26 financial year as expected. Its profit, however, fell short of the previous year's level. The company forecasted a further increase in sales for the current year on Wednesday.

Hollister brand remains growth driver

In the most recent financial year, which ended on January 31, group sales amounted to 5.27 billion US dollars. This represented an increase of 6 percent compared to the previous year and was in line with the current forecast. On a like-for-like basis, revenue increased by 3 percent.

The group owed the new sales record to its Hollister division, which achieved a 15 percent increase to 2.74 billion US dollars. This growth was sufficient to more than offset slight losses in the Abercrombie segment. Revenue in this division decreased by one percent to 2.52 billion US dollars.

Group sales developed positively across all market regions. In the Americas, revenue grew by seven percent to 4.29 billion US dollars. Sales in the EMEA region, which includes Europe, the Middle East and Africa, increased by 6 percent to 818.1 million US dollars. The Asia-Pacific region saw a 5 percent rise to 157.8 million US dollars.

Management forecasts further sales growth

Higher costs, however, caused profit to fall short of the previous year's level. Operating income decreased by 5.6 percent to 699.1 million US dollars, and net income attributable to shareholders fell by 10.5 percent to 506.9 million US dollars. Diluted earnings per share shrank to 10.46 US dollars from 10.69 US dollars in the previous year.

For the current year, management now forecasts sales growth of three to 5 percent and diluted earnings per share in the range of 10.20 to 11.00 US dollars. This forecast already includes the foreseeable effects of the current US government's tariff policy. The company also announced the continuation of its share buyback programme. It plans to purchase its own shares with a total value of approximately 450 million US dollars during the year.

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