Guess who’s having a spectacular quarter? Abercrombie & Fitch just dropped their Q2 earnings, and one of their iconic brands is absolutely crushing it! While one brand stumbled, another soared, leading to raised full-year guidance. Are you surprised by which brand is leading the charge? Find out the full story!

Abercrombie & Fitch, the iconic apparel giant, has unveiled a robust second quarter for fiscal year 2025, significantly surpassing its own financial projections. The company, renowned for its Abercrombie and Hollister brands, reported an impressive performance driven by strategic initiatives and strong market reception, particularly for its teen-focused segment, signaling a positive trajectory for the remainder of the year.

On August 28, 2025, Abercrombie & Fitch disclosed record net sales of $1.21 billion on a GAAP basis, marking a substantial 7.0% increase year-over-year. This remarkable growth not only exceeded the company’s prior guidance of 3–5% net sales expansion but also underscored the effectiveness of its omnichannel retail strategy, which increasingly leverages digital channels for sales generation.

Further demonstrating financial strength, the adjusted earnings per share (EPS) for the quarter reached $2.32. While this figure represented a slight decline from $2.50 in the preceding period, it still comfortably surpassed the upper limit of the company’s guidance. Concurrently, the operating margin, excluding a one-time settlement gain, stood at a healthy 13.9%, once again outperforming the anticipated 12–13% range, reflecting efficient operational management.

Buoyed by these exceptional results, Abercrombie & Fitch has confidently raised its full-year guidance for FY2025. This optimistic outlook is largely attributed to the outstanding performance of its Hollister brand and sustained market strength observed across crucial regions, most notably the Americas and the Asia-Pacific, contributing significantly to overall business growth.

The Hollister family of products, specifically targeting teens, emerged as a dominant force during the second quarter. This brand experienced an extraordinary 19% year-over-year increase in GAAP net sales, marking its best second-quarter performance ever. This surge was propelled by high engagement during the crucial summer and back-to-school apparel seasons, highlighting Hollister’s strong connection with its core demographic.

In contrast, the Abercrombie brand faced considerable challenges during the same period, experiencing a 5% decline in sales. This downturn was primarily due to tough comparisons from the prior year and difficulties encountered with certain product launches and inventory mix adjustments. Consequently, comparable sales for the Abercrombie brand saw a significant 11% year-over-year fall, pointing to persistent brand-specific pressures within the fashion retail landscape.

Geographically, the Americas continued to be the primary engine of growth for Abercrombie & Fitch, reporting an 8% increase in net sales year-over-year and a 5% rise in comparable sales across the region. The Asia-Pacific region also showed promising expansion, with net sales climbing 12%, largely driven by new store openings, and comparable sales increasing by 1% year-over-year, showcasing international market strength.

Conversely, the Europe, Middle East, and Africa (EMEA) region experienced a downturn, with GAAP net sales declining by 1% and comparable sales dropping by 5% year-over-year. This represented a shift from the previously positive momentum observed in the first quarter, suggesting varying regional dynamics and consumer behaviors impacting retail sales globally.

Ultimately, Abercrombie & Fitch’s core business remains rooted in selling branded clothing and accessories to young adults and teens through its diverse product families. The company’s ongoing success is a testament to its balanced revenue mix, which encompasses robust digital sales, consistent in-store purchases, and strategic international expansion, all contributing to its long-term financial health and market position in the apparel industry.