Abercrombie & Fitch (ANF) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 4, 2026 astatine 9:13 AM CST 44 min read

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Wednesday, March 4, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Fran Horowitz

• Chief Financial Officer — Robert J. Ball

• Executive Vice President and Chief Operating Officer — Scott D. Lipesky

Fran Horowitz: Thanks, Mohit. Good morning, and acknowledgment for joining america today. Before we begin, I bash privation to admit the concern successful the Middle East, with associates and stores successful the region. Our absorption continues to beryllium connected their information and well-being. Returning to our results, I americium blessed to study the 4th fourth finished connected the higher extremity of the ranges provided successful our aboriginal January update. Once again, we accomplished precisely what we acceptable retired to do. Holiday merchandise acceptance drove grounds 4th fourth nett income with balanced maturation crossed regions, brands, and channels, on with maturation successful net per share.

As a company, our extremity is to acceptable wide commitments and past present connected them, leveraging our beardown instauration and operating model. We achieved different twelvemonth of accordant results for 2025, with grounds sales, maturation crossed regions and channels, and starring double-digit operating margins. Substantial operating currency flows besides enabled beardown returns of currency to shareholders via stock repurchases. Looking guardant to 2026, we expect to proceed connected a way of planetary maturation and adhd to our way grounds of accordant beardown profitability.

For the 4th quarter, we delivered nett income maturation of 5%, which was balanced crossed regions, brands, and channels. It was peculiarly large to spot some brands present grounds 4th fourth nett sales. At Abercrombie Brands, we achieved our extremity of returning the marque to maturation with 4% nett income maturation connected apical of a grounds past year. Hollister Brand continues to present for the teen customer, producing an eleventh consecutive 4th of nett income maturation astatine up 6%. With balanced top-line maturation and continued fiscal discipline, we delivered an operating borderline of 14.1%, including 360 ground points of tariff pressure. I person to admit the team's unthinkable efforts present to meaningfully trim the interaction of these costs.

On the bottommost line, net per stock of $3.68 improved 3% connected past year's grounds quarterly results, demonstrating our quality to make worth done a balanced operation of planetary growth, operational excellence, and disciplined superior allocation.

Recapping the year, fiscal 2025 nett income were a grounds $5.3 billion, surpassing $5.0 cardinal for the archetypal clip successful institution history. We grew implicit 6%, exceeding our beginning-of-the-year maturation projections provided past March. For the 3rd consecutive year, our customers responded to the team's compelling merchandise and engaging marketing, delivering nett income maturation crossed regions led by the Americas, up 7%. Sales besides grew crossed channels for the 3rd twelvemonth successful a row. We proceed to spot large postulation connected integer and successful store and, importantly, we proceed to spot our highest worth customers buying crossed channels.