Abercrombie & Fitch (ANF) Stock Jumps 18% as Hollister Drives Earnings Beat

TLDR

• Abercrombie & Fitch (ANF) stock jumped 18% after third-quarter earnings of $2.36 per share beat analyst estimates of $2.16
• Total revenue reached $1.29 billion, up 7% year-over-year, meeting Wall Street expectations
• Hollister drove growth with 16% sales increase to $673.27 million and 15% comparable sales growth
• Abercrombie brand sales fell 2% to $617.35 million with comparable sales down 7%
• Company raised full-year net sales guidance to 6%-7% growth, up from previous 5%-7% range

Abercrombie & Fitch posted third-quarter results that exceeded Wall Street expectations, sending shares soaring 18% in premarket trading Tuesday. The retailer reported earnings of $2.36 per share, beating analyst estimates of $2.16.

Abercrombie & Fitch Co., ANF

Revenue for the quarter ended November 1 reached $1.29 billion, up 7% from $1.21 billion a year earlier. The company’s net income came in at $113 million for the quarter.

The earnings report revealed a clear shift in the company’s growth story. While Abercrombie brand has driven the retailer’s comeback in recent years, that momentum has stalled.

Sales at the Abercrombie brand dropped 2% to $617.35 million, missing analyst expectations of $631.8 million. Comparable sales at the brand plunged 7% during the quarter.

Hollister Becomes Growth Engine

Hollister stepped up to carry the company forward. The brand’s sales climbed 16% to $673.27 million, crushing analyst expectations of $649.7 million. Comparable sales at Hollister rose 15%.

This marks at least the third consecutive quarter where Hollister has delivered strong performance while the Abercrombie brand struggles. CEO Fran Horowitz indicated that Hollister will drive the company’s holiday shopping season.

The company expects Abercrombie brand sales to remain flat in the current quarter. Last quarter, Horowitz attributed the Abercrombie slowdown to old inventory requiring markdowns.

She had predicted the brand would return to growth by year-end. That expectation appears to have shifted based on the latest guidance.

Holiday Guidance Meets Expectations

Abercrombie issued fourth-quarter guidance that largely aligned with Wall Street forecasts. The company expects sales to grow between 4% and 6%, slightly below analyst expectations of 5.6% growth.

Earnings per share for the fourth quarter are projected between $3.40 and $3.70. Analysts had estimated $3.55 per share.

The retailer raised its full-year outlook despite the challenges at its namesake brand. Net sales are now expected to increase 6% to 7% for the fiscal year, up from the previous range of 5% to 7%.

Net income per share guidance was adjusted to between $10.20 and $10.50, compared to the earlier range of $10 to $10.50. The updated forecast reflects the stronger-than-expected third-quarter performance.

Abercrombie stock has fallen 56% this year through Monday’s close. Weak consumer spending on discretionary items and tariff pressures have weighed on the retailer throughout 2025.

The company’s conference call will likely focus on plans to revive growth at the Abercrombie brand. Investors will want to hear specific strategies for addressing the sales decline and inventory challenges that have plagued the banner.

Hollister’s performance demonstrates the brand still has appeal with younger shoppers. The 15% comparable sales growth shows strong traffic and conversion at those locations. Abercrombie now expects Hollister to carry the company through the critical holiday season.

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