Abercrombie & Fitch The increase in sales slowed down in its financial second quarter as the apparel company struggles to top to enjoy the last financial year.
During the quarter, sales in the Ebercrombi brand called 5% fell by 5%, while comparable sales fell 11%.
But the success of the teenage-centered hallister brand helped the quarters to revive. Overall, the sales of ebercrombi and fitch climbed 7%, the company said the best second quarter net sales growth due to an increase of 19% in the hallister, the company said. Comparative sales in trade increased by 3%, with comparative sales 19%increased by 19%.
Abbercrombi defeated Wall Street’s hopes narrowly on the top and bottom lines. The company also increased its full year’s revenue outlook and now sales are expected to grow from 3% to 6%, while the previous guidance will climb from 5% to 7% compared to the previous guidance. According to LSEG, most of that range will have an expectations of an increase of 5.2%.
The stocks fell nearly 4% in premarket trading.
Here is what the company did on the basis of a survey of analysts by LSEG compared to Wall Street in the quarter of its second financial year:
- Income per share: $ 2.32 adjusted Vs $ 2.30 expected
- Revenue: $ 1.21 billion vs $ 1.20 billion expected
The company reported for a period of three months ended on August 2 was $ 141 million, or $ 2.91 per share, while a year ago $ 133 million, or $ 2.50 per share. Except for the impact of a favorable litigation disposal, Ebercrombi witnessed an earning of $ 2.32 per share.
Sales increased by $ 1.13 billion to about $ 1.21 billion to $ 1.21 billion a year ago.
CEO Frank Horovitz said in a news release, “We entered the crime in the second half of 2025.” “We are enhancing our entire year net sales approach, reflecting our strong position and development trajectory, building on record 2024 results. Our team focuses on distributing to our customers by investing to cash in important, long -term opportunities for our global brands.”
For its current quarter, Ebercrombi also gave a better-and-up-loving sales approach. It is estimated that according to LSEG, revenue will increase between 5% and 7%, defeating the hopes of growth of 4.3%.
Meanwhile, its advantage for the fiscal third quarter is weaker than outlook. According to LSEG, the company will be between $ 2.05 and $ 2.25 per share, which will be significantly below the expectations of $ 2.53.
According to the Strikount, Ebercrombi said that he expects his operating margin, expecting a closely seen metric on Wall Street, between 11% and 12% during its current quarter, less than the expectations of Wall Street of 13.3%.
For the whole year, Ebercrombi tightened his earning approach and now income per share is expected to income between $ 10.00 and $ 10.50. It compares with the previous range of $ 9.50 to $ 10.50 per share.
The pure tariff cost under the guidance of Ebercrombi includes approximately $ 90 million – almost double that it was earlier anticipated. When it announced the earnings of fiscal first quarters in May, Ebercrombi said that it was expecting $ 70 million hit from tariff It can be reduced by $ 50 million through mitigation.
At the time, President Donald Trump’s so -called mutual tariffs were held at 10% in most parts of the world. But now the major manufacturing sectors for the Ebercrombi company, Vietnam, Cambodia and India are facing high duties on goods.
At that time, the company said it was not planning to increase a comprehensive price increase as part of its mitigation efforts. It is not clear whether the ebercrombi will change the attitude that has now increased the tariff throughout Asia.
Abbercromi & Fitch, once a forgotten mall brand, has been on a rocket ship of development over the years. But Serge has started slowing down the banner of its name.
The company has moved to new categories, such as clothes, ethlecure and bride to encourage development. It is also working to expand internationally and bend on partnership.
On Monday, the company announced that this would be NFL’s first “official fashion partner”-a multiaier deal that would include athletes, athlete-led campaigns and personal styling for player-designed apparel. Ebercrombi shared a classification of NFL licensed products in 2022, a category that performed well for the company.
It has worked with star players such as Christian McCafre, T Higgins and CD Lamb to advertise partnerships and designed limited-sanskrit co-designed apparel that will be available for sale during the upcoming season.
The partnership indicates that steps are being taken to ensure that retail vendors are being raised and at a time relevant with consumers when shopkeepers are pulling back on good items such as new clothes and accessories. Contestants Levi, American Eagle And Difference Pass Combine with celebrities Recent marketing campaigns ahead of back to school and fall shopping season.
Nevertheless, questions arise about the recession as to how the brand will grow in the forward quarters, especially to be warm in competition, in a note said Globalada’s managing director Neil Sounders said.
Saunders said, “Better numbers … probably start to decrease comparatively of the previous year, but they also need to be an engineer by the company. We believe there are some good initiatives in playing here, including foreign expansion of the brand.” “The investigation of our recent channel at new stores in London was all positive, although we believe that stores can reach a high capacity after strengthening the consumer economy in the UK.”
Internationally, efforts to expand ebercrombi are paid in parts of the world. During the quarter, sales in its Asia Pacific region increased by 12%, while comparable sales climbed 3%. It was an offset with a recession in Europe, Middle East and Africa, where sales were 1% and comparable sales were 5% below.
Ebercrombi has also started expanding in bulk for its ebercrombi kids brand. Saunders said that the company has a very small share of the overall market, priced at $ 82.1 billion last year.
“It leaves a lot of headrooms for development,” said Saunders. “Extending through bulk is a sensible strategy: it provides a relatively high access to new customers and requires much less capital than opening additional stores – of which ebercrombi children still have relatively low.”
