Abercrombie's Fourth Quarter Results Are Approaching: Key Information You Need

Abercrombie & Fitch Co. Set to Announce Q4 Fiscal 2025 Results

Abercrombie & Fitch Co. (ANF) is preparing to release its fourth-quarter fiscal 2025 financial results on March 4, prior to market open.

Analysts surveyed by Zacks anticipate fourth-quarter revenue to reach $1.67 billion, reflecting a 5.3% increase compared to the same period last year. The consensus for quarterly earnings stands at $3.56 per share, which would represent a slight 0.3% decrease year over year. Notably, this earnings estimate has remained unchanged over the past month.

In the previous quarter, Abercrombie exceeded earnings expectations by 10.3%. Over the last four quarters, the company has averaged an 8.2% positive earnings surprise. Recently, ANF shares have risen by 2.88%.

Key Factors Influencing Performance

The company’s performance this quarter is expected to be supported by its Always Forward strategy, strong brand positioning, and ongoing efforts to optimize its store footprint. Abercrombie continues to expand its brand portfolio and refine its flexible operating model, with the Read & React inventory system remaining a cornerstone of its approach. On the digital front, the company is enhancing customer engagement through faster delivery, improved product discovery, and increased localization, all backed by investments in technology to strengthen its omnichannel capabilities. The company’s brands are well-positioned for growth in their respective markets.

Last month, management updated its outlook for both the fourth quarter and the full fiscal year. The company reported record net sales through December, in line with expectations, and saw balanced growth across regions, brands, and sales channels. The Hollister brand experienced a strong holiday season and is projected to achieve mid-teen percentage sales growth for fiscal 2025. The Abercrombie brand also saw positive holiday momentum, with anticipated low single-digit sales growth for the fourth quarter.

For the fourth quarter, management expects net sales to increase by approximately 5%, with net income per share projected between $3.50 and $3.60, compared to the previous forecast of $3.40 to $3.70. Operating margin is anticipated to remain around 14%. The company plans to repurchase about $100 million in shares, with diluted weighted average shares estimated at 47 million for the quarter. According to internal projections, sales are expected to rise nearly 5%, with an adjusted operating margin of 14% and earnings per share of $3.52 for the quarter. For the full fiscal year, management forecasts at least 6% sales growth and an operating margin near 13%. Net income per share is expected to range from $10.30 to $10.40, with internal estimates pointing to 6.4% sales growth, a 12.5% adjusted operating margin, and earnings per share of $10.38.

Despite a challenging business environment, increased tariffs are adding to cost pressures. The revised guidance factors in the expected impact of tariffs on U.S. imports based on current trade policies as of January 9, 2026, but does not account for any additional future policy changes. After planned mitigation efforts, the company anticipates about $90 million in tariff expenses for the year, equivalent to 170 basis points of net sales. Additionally, inflation and higher investments are expected to contribute to increased costs.

Insights from the Zacks Model

According to the Zacks model, there is no clear indication that Abercrombie will surpass earnings expectations this quarter. Typically, a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the likelihood of an earnings beat, but that is not the case here. Investors can use the Earnings ESP Filter to identify stocks with the best chances of outperforming estimates.

Currently, Abercrombie’s Earnings ESP stands at -1.24% with a Zacks Rank of 3.

Abercrombie & Fitch: Price and EPS Surprises

For more details, see the Abercrombie & Fitch Company price and EPS surprise chart and the company quote.

Stock Valuation and Recent Performance

From a valuation standpoint, Abercrombie trades at a forward 12-month price-to-earnings ratio of 9.52, which is well below the Retail - Apparel and Shoes industry average of 18.70.

In the past six months, ANF shares have advanced 0.6%, while the broader industry has grown by 12.7%.

Stocks with Potential to Beat Earnings

According to the Zacks model, the following companies are positioned to potentially exceed earnings expectations:

• Dollar General Corporation (DG): Earnings ESP of +7.64% and Zacks Rank 2. Expected to report top-line growth for Q4 fiscal 2025. The consensus revenue estimate is $10.8 billion, up 4.4% year over year. The consensus earnings estimate is $1.58 per share, down 6% from the prior year, with an average four-quarter earnings surprise of 22.9%.
• Ross Stores, Inc. (ROST): Earnings ESP of +4.39% and Zacks Rank 2. Expected to show growth in both revenue and earnings for Q4 fiscal 2025. The consensus revenue estimate is $6.4 billion, up 7.8% year over year. The consensus earnings estimate is $1.87 per share, up 4.5% from the prior year, with an average four-quarter earnings surprise of 6.7%.
• lululemon athletica (LULU): Earnings ESP of +0.89% and Zacks Rank 3. Expected to achieve top-line growth for Q4 fiscal 2025. The consensus revenue estimate is $11.1 billion, a 4.6% increase from the prior year. The consensus earnings estimate is $4.74 per share, down 22.8% year over year, with an average four-quarter earnings surprise of 7.8%.

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