Abercrombie Shifts to ‘Offensive’ Strategy After Eleventh Straight Quarter of Growth

Abercrombie&Fitch faces the second half of the year in an “offensive” phase. The American group, which posted its eleventh consecutive quarter of growth at the end of the second quarter, is raising its forecasts for the year as a whole. In the second quarter (ended at the beginning of August), the company also corrected its net income performance.

“We have entered the second half of 2025 with an offensive strategy,“ said Fran Horowitz, group CEO; “ we are raising our full-year net sales guidance, reflecting our strong positioning and growth trajectory, based on record results in 2024.

The company, which has turned its business around in recent years, ended the second quarter with sales of $1.208 billion, an increase of more than 6.62% over the same period last year. For the first six months of the year, the increase in sales was 7.01%, to 2,305 million dollars.

Abercrombie estimates an impact of around $90 million due to tariffs

The group’s operating income rose 17% in the second quarter, leaving the half-yearly accumulated figure stagnant at $308 million. Net income, meanwhile, rose 5.92% in the second quarter to $143 million, while in the first half it remained 10% below the same period last year.

“We achieved record net sales in the second quarter, exceeding our expectations,“ said the group’s CEO. “ We continued to drive significant interaction with our teenage customers in the Hollister brands, with growth of 19% thanks to strong demand during the summer and back-to-school period.

With Hollister’s sales up, Abercrombie’s sales have moved in the opposite direction. “While we made progress on key inventory initiatives by leveraging promotions and testing new product concepts, net sales for the Abercrombie brands declined 5%, following 26% growth in the prior year,“ the CEO detailed.

The group estimates growth for the full year of between 5% and 7% (compared with a range of between 3% and 6% previously) and an operating margin of between 13% and 13.5%. In its forecasts, the company estimates an impact of around $90 million due to U.S. tariffs on the main textile production hubs in the world.