Shares of Abercrombie & Fitch Co. (NYSE:ANF) moved higher in premarket trading on Wednesday after the apparel retailer reported fourth-quarter results that came in ahead of Wall Street expectations.
The company reported adjusted earnings per share of $3.68, surpassing the analyst consensus estimate of $3.58 by $0.10. Revenue reached $1.7 billion, slightly above the $1.67 billion forecast and representing a 5% increase compared with the same period a year earlier.
For the full fiscal year 2025, Abercrombie & Fitch generated revenue of $5.3 billion, reflecting a 6% year-over-year increase. However, net sales for the Abercrombie brand declined 1% during the year, while the Hollister brand delivered record performance with 15% growth. The company reported a full-year operating margin of 13.3% and diluted earnings per share of $10.46.
Shares rose 4.8% following the earnings release.
Looking ahead to fiscal 2026, Abercrombie forecast earnings per share between $10.20 and $11.00, with a midpoint of $10.60—above the analyst consensus estimate of $10.40. The company expects full-year net sales to grow between 3% and 5%, with an operating margin projected in the range of 12.0% to 12.5%. First-quarter EPS is expected to fall between $1.20 and $1.30.
“Our record fourth quarter net sales marked our thirteenth consecutive quarter of growth, with both operating margin and earnings per share at the high end of expectations we shared in early January,” said Chief Executive Officer Fran Horowitz.
The company’s fiscal 2026 outlook includes the estimated impact of a 15% tariff on all goods imported into the United States, which took effect on February 24, 2026. After accounting for planned mitigation measures, the tariff is expected to reduce margins by about 290 basis points in the first quarter and roughly 70 basis points for the full year.
Abercrombie generated $619 million in operating cash flow during fiscal 2025 and repurchased 5.4 million shares for $450 million, representing approximately 11% of its outstanding shares. The company plans to allocate around $450 million to additional share buybacks during fiscal 2026.