The American clothing provider Abercrombie & Fitch Co. was able to significantly increase its sales in the first quarter of the 2025/26 financial year, but had to accept a decline in profits. Although the current figures that the company presented on Wednesday exceeded expectations, management reduced its result forecasts for the overall year.
The Hollister brand inspires sales development
In the first quarter, which ended on May 3, the group sales were almost $ 1.1 billion (970 million euros). This corresponded to an increase of eight percent compared to the same period last year. The group of sales owed the new sales record from an increase of 22 percent to $ 549.4 million in the Hollister division. The growth was sufficient to make a minus of four percent to $ 547.9 million in the Abercrombie segment more than to make up.
All market regions contributed to the strong growth of group sales. In America, revenues increased by seven percent to $ 874.8 million, in the EMEA region, which includes Europe, the Middle East and Africa, they rose by twelve percent to $ 185.0 million and $ 37.5 million in Asian-Pacific.
Management corrects its result goals down
However, higher costs ensured that the profit missed the corresponding level of previous year. The operational result fell by 22 percent to $ 101.5 million. The net profit, which was due to the shareholders, slipped 29 percent to $ 80.4 million (EUR 71.1 million), but was thus above the company’s expectations.
Based on the latest development and current customs and tax rates, management updated its annual forecasts. It now expects three to six percent for 2025/26 after growth has been expected by three to five percent.
The forecast for the operational margin, which had previously been 14 to 15 percent, was reduced to 12.5 to 13.5 percent. The group now only expects a profit per share of $ 9.50 to $ 10.50 after $ 10.40 to $ 11.40.