Abercrombie & Fitch Stock Soars After Upbeat Q1 Results: Retail Turns More Bullish

The upbeat earnings and revenue were driven by strong Hollister sales and margin expansion.
General view of the Abercrombie and Fitch store in Carnaby Street.
General view of the Abercrombie and Fitch store in Carnaby Street. (Photo by Vuk Valcic/SOPA Images/LightRocket via Getty Images)
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Shivani Kumaresan·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Shares of lifestyle retailer Abercrombie & Fitch Co. (ANF) surged 28% in Wednesday’s premarket after the company reported better-than-expected first-quarter (Q1) earnings.

Abercrombie’s Q1 2025 (FY25) net sales increased 8% year-on-year (YoY) to $1.1 billion, beating the analyst consensus estimate of $1.05 billion, as per Finchat data. 

The company's adjusted earnings per share (EPS) stood at $1.59, exceeding the consensus estimate of $1.36. 

This performance was bolstered by strong demand for Abercrombie’s Hollister brand, which saw a 23% rise in comparable sales, driven by popular items like vintage-style tees and denim. 

The Abercrombie brand experienced a 10% decline in comparable sales, attributed to ongoing brand repositioning efforts.

The Americas segment achieved a 9% increase in net sales, totaling $636.1 million. Internationally, the Asia-Pacific region saw an 11% rise in sales, while the Europe, Middle East, and Africa (EMEA) region experienced a 15% decline. 

The company's gross margin expanded by 570 basis points to 61%, primarily due to reduced freight costs and higher average unit retail prices. The operating margin declined 340 basis points to 9.3%.

Abercrombie ended the quarter with cash and cash equivalents of $511 million.

For FY25, the company projects net sales growth of 3% to 6%, an operating margin between 12.5% and 13.5%, and net income per diluted share ranging from $9.50 to $10.50.

For Q2, the company anticipates net sales growth of 3% to 5%, and net income per diluted share ranging from $2.10 to $2.30.

On Stocktwits, retail sentiment around Abercrombie & Fitch turned to ‘extremely bullish’ from ‘bullish’ the previous day.

ANF's Sentiment Meter and Message Volume as of 09:00 a.m. ET on May 28, 2025 | Source: Stocktwits
ANF's Sentiment Meter and Message Volume as of 09:00 a.m. ET on May 28, 2025 | Source: Stocktwits

A Stocktwits user lauded the earnings.

Another user highlighted that the company’s stores attract younger crowds.

Abercrombie & Fitch stock has shed over 48% in 2025 and over 49% in the last 12 months.

Also See: Box Stock Surges Post Strong Q1, Wall Street Lifts Price Target: Retail’s Exuberant

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