Abercrombie & Fitch has revised its outlook for the fourth quarter and full year of fiscal 2025 (FY25), keeping most projections intact while refining certain assumptions.
For the full year, the US retailer now anticipates net sales growth of at least 6%, narrowing its earlier guidance of 6% to 7%.
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Operating margin is projected to be around 13%, compared with a previous expectation of 13.0% to 13.5%, while the effective tax rate is unchanged at roughly 30%.
Earnings per diluted share for the year are now forecast at between $10.30 and $10.40, compared with the earlier range of $10.20 to $10.50.
Planned share repurchases remain at approximately $450m, with diluted weighted average shares estimated at around 48 million.
Capital expenditure guidance has been lifted to $245m, up from roughly $225m previously.
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By GlobalDataThe company’s real estate plans are unchanged, with around 40 net store additions expected, reflecting 60 openings and 20 closures, alongside approximately 40 remodels and right-size projects.
Abercrombie & Fitch CEO Fran Horowitz said: “We remain on track for another year of significant progress, consistently delivering on our goals with expected record net sales and growth of at least 6%.
“We’ve put our capital to work across marketing, digital and stores to end 2025 with a stronger foundation and deliver significant returns for investors through financial performance and share repurchases.”
For the fourth quarter of fiscal 2025, net sales growth is expected to be around 5%, in line with the prior guidance range of 4% to 6%.
Quarterly net income per diluted share is now expected to fall between $3.50 and $3.60, compared with earlier guidance of $3.40 to $3.70.
Operating margin is forecast at approximately 14%, with an effective tax rate of 30%.
Planned share repurchases of around $100m and diluted weighted average shares of approximately 47 million remain unchanged.
The updated outlook incorporates the estimated effect of tariffs on goods imported into the US under trade policies.
After mitigation measures, the full-year assumptions include around $90m in tariff-related costs, equivalent to 170 basis points of net sales.
The guidance also reflects a $39m pre-tax benefit, or $29m on a tax-adjusted basis, linked to a litigation settlement.
