Abercrombie & Fitch Co. (NYSE:ANF) saw its stock rise after reporting stronger-than-expected second-quarter results on Tuesday. Revenue reached a record $1.2 billion, prompting the retailer to lift its full-year sales guidance despite ongoing tariff challenges.
The company posted adjusted earnings of $2.32 per share, surpassing analyst estimates of $2.27. Year-over-year revenue increased 7%, topping the consensus forecast of $1.19 billion. Following the announcement, shares surged 4.7%, marking the retailer’s eleventh consecutive quarter of growth.
Hollister led the way with its strongest second quarter ever, posting 19% sales growth, while Abercrombie brands fell 5%, weighed down by tough comparisons to last year’s 26% growth. Regionally, sales in the Americas climbed 8%, Asia-Pacific rose 12%, and Europe, the Middle East, and Africa saw a modest 1% decline.
“We delivered record second quarter net sales, exceeding our expectations, with 7% growth to last year,” said CEO Fran Horowitz. “We continued to drive meaningful engagement with our teen customer in Hollister brands, growing 19% on strong summer and back-to-school demand.”
The company raised its full-year sales growth forecast to 5-7%, up from the previous range of 3-6%. For Q3, Abercrombie expects earnings between $2.05 and $2.25 per share, below analyst expectations of $2.57, factoring in roughly $90 million in tariff costs for the full year.
Operating margin for the quarter was 13.9% on an adjusted basis, compared to 15.5% last year. The company continued its share repurchase program, buying back 0.6 million shares for about $50 million during the quarter.
Abercrombie reaffirmed its full-year earnings guidance of $10.00 to $10.50 per share, in line with the analyst consensus of $10.30.
Abercrombie and Fitch stock price
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