Abercrombie Faces 14% Profit Dip in Third Quarter Due to Tariff Impact

Abercrombie&Fitch suffers in the third quarter. Although it managed to keep its sales up, the U.S. company ended the period ended November 2nd with a 14.18% drop in net income. Investments in marketing, digitalization and technology, as well as the impact of tariffs, have penalized the group’s profitability.

According to the company, at the end of the third quarter, sales stood at $1.29 billion, a growth of 6.79% compared to the same period of 2024. For the year to date, the company’s sales rose by 6.93% to $3.59 billion.

The company’s operating income fell by 13.41% in the third quarter to $155 million, while at the end of the first nine months the decline was contained to 4.34%, to $463 million.

The group’s net income recorded a similar trend, down 14.17% in the third quarter and 11.46% in the first nine months, to $115 million and $340 million, respectively.

The company’s operating income fell by 13.41% in the third quarter, to $155 million

In the third quarter, the Americas was once again the company’s main market, with sales of $1,057.5 million, up 7% on the same period last year. The Emea region (which includes Europe, the Middle East and Africa) also increased its sales by 7% to $194.5 million, while Asia Pacific declined by 6% to $38.7 million.

Hollister was ahead of Abercrombie in terms of chain sales. While Hollister advanced 16%, with sales of $673.3 million, Abercrombie’s sales were 2% lower than in the same period last year, to $617.4 million.

“We have achieved three consecutive years of quarterly sales growth, with record third quarter net sales,“ said Fran Horowitz, the company’s CEO.

“We delivered a 12% operating margin, including significant investments in marketing, technology and digitization, plus 210 basis points of adverse impact from tariffs,“ the executive detailed.