Abercrombie & Fitch Reports Record Sales in Fiscal 2025

Retailer outlines tariff headwinds, strategic review of Asia-Pacific business for fiscal 2026

Published on Mar. 6, 2026

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Abercrombie & Fitch (NYSE:ANF) reported strong fourth-quarter and full-year fiscal 2025 results, with net sales reaching a record $5.27 billion. However, the company faced significant tariff headwinds that pressured profitability. Management also outlined a fiscal 2026 outlook that assumes additional tariffs will remain in effect and flagged a strategic review of its Asia-Pacific business to improve returns.

Why it matters

Abercrombie & Fitch's performance reflects broader trends in the retail industry, including the impact of trade tensions and tariffs, the ongoing shift to digital sales, and the challenges of maintaining profitability in a competitive environment. The company's strategic review of its Asia-Pacific business also highlights the need for retailers to continuously evaluate their global footprint and optimize their operations.

The details

For the fourth quarter of fiscal 2025, Abercrombie & Fitch reported net sales of $1.67 billion, up 5% year over year. Comparable sales rose 1%, including roughly 100 basis points of benefit from foreign currency. The company posted an operating margin of 14.1% and operating income of $236 million, compared with $256 million a year earlier. The year-over-year operating margin decline of 210 basis points was 'driven primarily' by 360 basis points of tariff expense, partially offset by 140 basis points of freight cost favorability.

  • For the full year on an adjusted non-GAAP basis, the company reported record net sales of $5.27 billion, up 6% year over year.
  • The company ended the year with $760 million in cash and cash equivalents and about $1.2 billion in liquidity, plus $25 million in current investments.

The players

Abercrombie & Fitch

An American specialty retailer that designs, markets and sells casual apparel and accessories for men, women and children.

Robert Ball

The Chief Financial Officer of Abercrombie & Fitch.

Fran Horowitz

The Chief Executive Officer of Abercrombie & Fitch.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

For fiscal 2026, the company guided for net sales growth of 3% to 5% from fiscal 2025's $5.27 billion, with growth expected across brands. Management projected a 40 basis point favorable impact from foreign currency. The company expects modest AUR improvement for the year, supported by 'revised ticket pricing' largely focused on fashion elements, while noting it did not raise prices in key categories such as denim and opening-price-point T-shirts.

The takeaway

Abercrombie & Fitch's strong fiscal 2025 performance, marked by record sales, underscores the company's ability to navigate a challenging retail landscape. However, the retailer's profitability was impacted by tariff headwinds, highlighting the ongoing need for retailers to adapt to evolving trade policies and optimize their global operations. The strategic review of the Asia-Pacific business suggests the company is committed to improving returns and positioning itself for long-term success.