Abercrombie & Fitch Posts Record Sales Amid Margin Pressures
Abercrombie & Fitch Co. (ANF) reported fourth-quarter revenue of $1.67 billion, a 5.4% year-over-year increase that matched analyst expectations. The apparel retailer's thirteenth consecutive quarter of growth was overshadowed by margin compression, with operating margins slipping to 14.1% from 16.2% in the prior year period.
While GAAP earnings of $3.68 per share beat consensus estimates by 3.1%, adjusted EBITDA of $276.4 million came in slightly below projections. The company's Hollister brand delivered strong 15% sales growth, contrasting with a 1% decline for the Core Abercrombie brand.
Market reaction remained volatile as softer Q1 revenue guidance—projected 2.8% below expectations—offset the solid earnings performance. Shares closed at $99.22 after swinging between gains and losses throughout the trading session.
