US clothing retailer Abercrombie & Fitch Co. published its updated forecasts for the fourth quarter and full fiscal year 2025/26 on Monday. The company therefore expects new record results despite growing challenges.
In a statement, CEO Fran Horowitz said the company maintained a strong offensive strategy throughout the holiday season, which resulted in new sales records in the quarter to date through December. The growth was therefore distributed evenly across all regions, brands and sales channels.
Based on current knowledge, the Hollister brand is expected to achieve sales growth in the mid-teens percent range in the current financial year. The Abercrombie division is expected to post a low single-digit growth rate in the fourth quarter.
The group now expects sales growth of at least six percent for the entire 2025/26 financial year. An increase of six to seven percent was previously expected. The operating margin is expected to be around 13 percent.
Diluted earnings per share guidance, previously at $10.20 to $10.50, has been narrowed to $10.30 to $10.40.
The group expects sales growth of around five percent for the fourth quarter. This corresponds to the middle of the previous forecast range of four to six percent. The operating margin for this period is expected to remain stable at around 14 percent. On this basis, diluted earnings per share of between $3.50 and $3.60 are forecast for the final quarter.
The company confirmed its plans to repurchase shares totaling approximately $450 million throughout the fiscal year. Of this, $100 million is attributable to the fourth quarter.
Looking ahead, the group plans to increase its capital expenditures to approximately $245 million. This is an increase from the previous estimate of $225 million. This is intended to promote the expansion of stationary and digital retail. The plan is to open 60 new stores, 40 renovations and various technological measures.
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