Abercrombie & Fitch (NYSE:ANF) reported record-breaking financial results for fiscal 2025 on Wednesday, as the teen-focused Hollister brand propelled the retailer to its highest annual sales in company history despite a slight cooling at its namesake brand.
The New Albany, Ohio-based retailer posted full-year net sales of $5.27 billion, a 6% increase that marks the fulfillment of its "Always Forward" strategic plan a year ahead of schedule.
The performance was capped by a robust fourth quarter, where net sales rose 5% to $1.67 billion.
While the Abercrombie brand saw a modest 1% decline for the year following a massive 2024, Hollister emerged as the group's primary engine, delivering a 15% surge in annual revenue.
Profitability remained a standout feature of the report.
Abercrombie & Fitch achieved a full-year operating margin of 13.3%, maintaining double-digit margins for the third consecutive year.
GAAP net income per diluted share reached $10.46, reflecting the company’s ability to sustain premium pricing even as it navigated nearly $90 million in tariff-related costs throughout the year.
Reflecting management’s confidence in the brand's trajectory, the company executed a massive capital return program in 2025.
Abercrombie repurchased 5.4 million shares—approximately 11% of its outstanding stock—at a total cost of $450 million.
The company ended the fiscal year with $760 million in cash and equivalents, providing ample liquidity to continue its store-optimization strategy, which included roughly 40 net new openings in 2025.
Meanwhile, the company issued a constructive outlook for the 2026 fiscal year, with net sales expected to grow between 3% to 5%.