Abercrombie & Fitch’s third quarter results were met with a positive market reaction, driven by strong momentum at Hollister and resilient performance across core categories despite margin compression. Management credited double-digit growth in the Hollister brand, successful brand collaborations, and disciplined inventory management as key drivers. CEO Fran Horowitz noted, “Our traffic is positive. Our customer file continues to grow. We're seeing nice engagement in our digital and stores channels.” The company also highlighted the effectiveness of targeted marketing and product launches, particularly in women’s and seasonal categories.
Is now the time to buy ANF? Find out in our full research report (it’s free for active Edge members).
Abercrombie and Fitch (ANF) Q3 CY2025 Highlights:
- Revenue: $1.29 billion vs analyst estimates of $1.28 billion (6.8% year-on-year growth, 0.9% beat)
- EPS (GAAP): $2.36 vs analyst estimates of $2.16 (9.4% beat)
- Adjusted EBITDA: $193.6 million vs analyst estimates of $191.2 million (15% margin, 1.2% beat)
- Revenue Guidance for Q4 CY2025 is $1.66 billion at the midpoint, roughly in line with what analysts were expecting
- EPS (GAAP) guidance for the full year is $10.35 at the midpoint, beating analyst estimates by 2.9%
- Operating Margin: 12%, down from 14.8% in the same quarter last year
- Locations: 827 at quarter end, up from 773 in the same quarter last year
- Same-Store Sales rose 3% year on year (16% in the same quarter last year)
- Market Capitalization: $4.80 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Abercrombie and Fitch’s Q3 Earnings Call
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Dana Telsey (Telsey Advisory Group) asked about Abercrombie brand performance by category and region. CEO Fran Horowitz highlighted strong engagement and inventory positioning, while CFO Robert J. Ball discussed ongoing international expansion efforts, especially in EMEA and APAC.
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Corey Tarlowe (Jefferies) inquired about sustaining Hollister’s momentum into 2026. Horowitz pointed to balanced growth, tight inventory, and successful collaborations as key factors, while Ball addressed stable pricing and positive customer traffic trends.
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Matthew Boss (JPMorgan) questioned inventory composition and gross margin outlook. Ball detailed tight inventory control, noting most increases attributed to tariffs, and explained expectations for flat AURs and continued margin pressures from tariffs in Q4.
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Marni Shapiro (The Retail Tracker) asked about the impact and cadence of brand collaborations. Horowitz explained that collaborations are designed for authentic customer engagement and new customer acquisition, with plans to continue similar initiatives globally.
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Janet Joseph Kloppenburg (JJK Research Associates) pressed for detail on tariff mitigation and timing of price increases. Ball described mitigation efforts, indicating price increases would roll out with spring assortments and that new vendor negotiations should provide relief in 2026.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will monitor (1) the effectiveness of targeted price increases and their impact on traffic and sales growth, (2) the pace and scale of new brand collaborations and marketing campaigns, and (3) progress in digital and AI-driven initiatives designed to improve operational efficiency and customer experience. Additionally, how well Abercrombie & Fitch manages tariff headwinds while sustaining momentum at Hollister will be a key factor to watch.
Abercrombie and Fitch currently trades at $102.38, up from $65.87 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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