Abercrombie & Fitch, extending its long streak of quarterly gains, reported fourth quarter results that met the high end of the company’s expectations.
In addition, the company is forecasting single-digit sales gains in 2026.
For the quarter ended Jan. 31, net sales rose 5 percent to $1.67 billion, with comparable sales up 1 percent.
Operating income of $236 million last quarter compared to $256 million in last year’s quarter. Operating margin as a percent of sales was 14.1 percent, compared to 16.2 percent in the year-ago period.
Net income per diluted share came in at $3.68, ahead of both Wall Street’s expectations at $3.58 and the $3.57 earned in the year-ago period.
The Abercrombie brand Q4 sales rose to $806.5 million from $772.7 million. And the Hollister division’s sales increased to $863.3 million from $812.3 million.
“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 Fran Horowitz, chief executive officer, in a statement.
“Reflecting on fiscal 2025, I’m proud of our accomplishments,” Horowitz said. “We delivered record net sales with 6 percent growth and achieved our third straight year of double-digit operating margins, all while continuing to strengthen the business through investments in marketing, stores, people and digital capabilities. Supported by $619 million in operating cash flow, we repurchased 5.4 million shares, representing 11 percent of shares outstanding at the beginning of the year, reinforcing our commitment to long-term value creation and shareholder returns.
“We entered fiscal 2026 with a strong foundation, including two globally relevant brands, a proven operating model, and a robust balance sheet, all managed by a world class team,” Horowitz added. “Our goals for 2026 are to grow net sales, deliver another year of double-digit operating margin and grow earnings per share, all while making strategic investments that will fuel our long-term global ambition.”
For the full year, net sales rose 6 percent to $5.27 billion, with comparable sales increasing 3 percent.
For the first quarter, A&F expects sales gains of 1 percnet to 3 percent, operating margin around 7 percent, and net income per diluted share of $1.20 to $1.30.
And for all of 2026, the company expects sales gains of 3 to 5 percent, operating margin in the range of 12 to 12.5 percent, and net income per diluted share in the range of $10.20 to $11.
