Abercrombie & Fitch Shatters Q1 Expectations with Record Sales Growth
Abercrombie & Fitch, the iconic American retailer, has kicked off 2025 on a high note, reporting record net sales growth of 8% in its first quarter. The company's strong performance exceeded expectations, driven by robust sales across all regions and brands.
According to Fran Horowitz-Bonadies, Chief Executive Officer, the company delivered net sales of $1.1 billion for the quarter, surpassing its predicted range of 4% to 6%. This impressive growth was achieved despite challenges in the market, demonstrating the company's ability to adapt and thrive.
The Americas region led the way with a 7% increase in sales, fueled by strong traffic levels both online and offline. The EMEA (Europe, Middle East, and Africa) region grew by 12%, with notable strength in the UK and Germany. Asia-Pacific saw a modest growth of 5%, with good comparable sales performance in China.
The company's Hollister brand was the standout performer, delivering record first-quarter results with net sales growth of 22%. This represents the eighth consecutive quarter of growth for the brand, which has seen impressive expansion across genders and categories, including fleece, jeans, and skirts. Cross-channel traffic remained strong, with marketing investment increasing year-over-year to support growth.
Despite a slight decline in Abercrombie brands' net sales, the company's CEO expressed confidence in the team and their ability to adapt quickly using the agile operating model. The brand is poised for sequential improvement on the top line in the second quarter, setting it up for potential growth later this year.
The company's commitment to its customers was evident in its decision to return $200 million to shareholders through share purchases totaling 5% of shares outstanding as of the beginning of the year. This demonstrates a clear focus on rewarding loyal shareholders and using the strong balance sheet to drive value creation.
With 13 store openings planned for the second quarter, including a successful new store in Williamsburg, Brooklyn, Abercrombie & Fitch is looking forward to an exciting summer season, leveraging its brand foundation and agility to respond to customer feedback and drive growth.
