Abercrombie & Fitch Q2 2025: Hollister Surges While Flagship Brand Falters

Abercrombie & Fitch Co. (ANF), a staple in casual apparel, recently released its financial results for the second quarter ending August 2, 2025. To understand the company's current health and trajectory, we're taking a closer look at the numbers from its latest 10-Q filing with the SEC. The report reveals a company enjoying solid revenue growth and strong profitability, largely propelled by an impressive performance from one of its key brands.

A Strong Quarter at a Glance

For the thirteen weeks ended August 2, 2025, Abercrombie & Fitch reported total revenue of $1.21 billion, a notable 7% increase from the $1.13 billion generated in the same period last year.

More impressively, the company translated this top-line growth into significant profits. Net income for the quarter was $143.4 million, up from $135.4 million year-over-year, resulting in a healthy net margin of 11.9%. Operating income, a key measure of core business profitability, also climbed to $206.7 million, yielding an operating margin of 17.1%.

This flow diagram provides a visual breakdown of how the company's revenue translates into profit after accounting for various costs and expenses.

A Tale of Two Brands

Digging deeper into the results reveals a fascinating divergence between the company's two main segments. The overall growth story is not uniform across its portfolio.

• Hollister Takes the Lead: The Hollister brand was the standout performer this quarter. Its revenue surged by an impressive 19%, growing from $551.6 million to $656.7 million. This strong performance indicates that Hollister's product assortment and marketing are resonating powerfully with its target demographic.

• Abercrombie Faces Headwinds: In contrast, the flagship Abercrombie brand experienced a 5% decline in revenue, falling to $551.9 million from $582.4 million in the prior year. This dip suggests that while the overall company is performing well, the Abercrombie brand may be facing challenges in a competitive market.

Geographic Performance

The company's performance also varied by region, with its home market leading the charge.

• Americas: This region, which is ANF's largest, saw sales increase by 8% to $974.2 million. It was also the most profitable segment, generating $319.8 million in operating income.
• EMEA (Europe, Middle East, and Africa): Sales in this region saw a slight dip of 1%, landing at $197.2 million.
• APAC (Asia-Pacific): While the smallest region, APAC posted 12% revenue growth to $37.2 million. However, this growth came at a cost, as the segment reported a small operating loss of nearly $6 million.

Looking Ahead

Abercrombie & Fitch's second-quarter results paint a picture of a financially healthy company with strong overall growth. The stellar performance of the Hollister brand more than compensated for the softness in the Abercrombie division. For investors and market watchers, the key question going forward will be whether the company can sustain Hollister's powerful momentum while implementing strategies to reinvigorate growth at its flagship Abercrombie brand. Achieving a more balanced contribution from both major brands will be crucial for long-term, sustainable success.