Abercrombie & Fitch Reports Mixed Q3 Results Amid Brand Challenges

Abercrombie & Fitch Co. reported its fiscal third-quarter results for the period ending November 1, 2025, showcasing a 7% increase in companywide sales, reaching $1.29 billion, compared to $1.21 billion in the same quarter last year. The company's net income was reported at $113 million, or $2.36 per share, down from $131.98 million, or $2.50 per share, a year earlier. Despite the overall growth, the Abercrombie brand experienced a 2% decline in sales, totaling $617.35 million, while Hollister brand sales surged by 16% to $673.27 million.

CNBCWWD

CEO Fran Horowitz indicated that while Abercrombie's sales have moderated, Hollister's robust performance is expected to drive growth during the holiday shopping season. The company plans to open 25 new stores and refresh 35 existing ones, with a focus on enhancing the Hollister brand. Horowitz emphasized the importance of exciting campaigns and collaborations, including partnerships with the NFL and Taco Bell, to attract customers.

CNBC

Following the third-quarter results, Abercrombie & Fitch adjusted its full-year sales outlook, raising the low end from 5% to 6% growth while maintaining the high end at 7%. The company also increased its earnings outlook, projecting earnings per share between $10.20 and $10.50. For the upcoming holiday quarter, the company anticipates sales growth of 4% to 6%, slightly below Wall Street's expectations of 5.6%.

Wall Street Journal

Despite the positive outlook for Hollister, the Abercrombie brand faces challenges, including inventory issues that have previously hindered growth. Analysts noted that executives did not provide a clear timeline for when Abercrombie would return to growth during the earnings call. Critics have raised concerns about the brand's ability to compete effectively in a changing retail landscape, especially as consumer preferences evolve.

CNBC

Horowitz stated, “We remain focused on bringing the Abercrombie brand back to growth by diligently executing the playbook that has delivered a double-digit compound annual growth rate on sales from 2019.” She highlighted the importance of maintaining healthy inventory levels and adapting to customer preferences, particularly in key categories like denim and sleepwear. The company is also investing in digital technology and marketing to enhance customer experiences.

WWD

• “Consumers are showing resilience. Our customer file is continuing to grow. Traffic in our stores and on our websites is strong. The key is to keep the team focused on what they can control. The customer always has a choice where to shop, but they’re continuing to choose us. We are clearly taking share.” — Fran Horowitz, CEO

WWD

• “From both a brand and regional perspective, we are investing in marketing, stores and talent to support sustainable, long-term growth.” — Fran Horowitz, CEO

WWD

As Abercrombie & Fitch navigates a mixed financial landscape, the company's reliance on Hollister's growth and strategic partnerships may be crucial for sustaining overall performance. The upcoming holiday season will be a key indicator of the effectiveness of its strategies and the potential recovery of the Abercrombie brand.

CNBC