Despite record sales in first quarter, Abercrombie & Fitch lowers profit forecast
The US clothing company 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 drop in profits. Although the current figures, which the company presented on Wednesday, exceeded expectations, the management lowered its earnings forecasts for the year as a whole. Hollister brand boosts sales performance
In the first quarter, which ended on May 3, group sales amounted to almost 1.1 billion dollars. This corresponded to an increase of 8 percent compared to the same period last year. The group owed the new sales record to an increase of 22 percent to 549.4 million dollars in the Hollister division. The increase was enough to more than offset a minus of 4 percent to 547.9 million dollars in the Abercrombie segment.
All market regions contributed to the strong growth in group sales. In the Americas, revenues increased by 7 percent to 874.8 million dollars, in the EMEA region, which includes Europe, the Middle East and Africa, they rose by 12 percent to 185 million dollars and in the Asia-Pacific region by 5 percent to 37.5 million dollars. Management corrects its earnings targets downwards
However, higher costs meant that profit missed the corresponding previous year's level. Operating profit fell by 22 percent to 101.5 million dollars. Net profit attributable to shareholders fell by 29 percent to 80.4 million dollars, but was above the company's expectations.
Based on the latest developments and current customs and tax rates, the management updated its annual forecasts. It now expects sales to increase by 3 to 6 percent in 2025/26, after growth of 3 to 5 percent had previously been expected.
However, the forecast for the operating margin, which had previously been 14 to 15 percent, was lowered to 12.5 to 13.5 percent. The group now only expects earnings per share of 9.50 to 10.50 dollars, after 10.40 to 11.40 dollars had previously been forecast. This article was translated to English using an AI tool.
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