Abercrombie & Fitch trims 2025 outlook, raises capital spending guidance

Abercrombie & Fitch has revised its outlook for the 4th fourth and afloat twelvemonth of fiscal 2025 (FY25), keeping astir projections intact portion refining definite assumptions.

For the afloat year, the US retailer present anticipates nett income maturation of astatine slightest 6%, narrowing its earlier guidance of 6% to 7%.

Operating borderline is projected to beryllium astir 13%, compared with a erstwhile anticipation of 13.0% to 13.5%, portion the effectual taxation complaint is unchanged astatine astir 30%.

Earnings per diluted stock for the twelvemonth are present forecast astatine betwixt $10.30 and $10.40, compared with the earlier scope of $10.20 to $10.50.

Planned stock repurchases stay astatine astir $450m, with diluted weighted mean shares estimated astatine astir 48 million.

Capital expenditure guidance has been lifted to $245m, up from astir $225m previously.

The company’s existent property plans are unchanged, with astir 40 nett store additions expected, reflecting 60 openings and 20 closures, alongside astir 40 remodels and right-size projects.

Abercrombie & Fitch CEO Fran Horowitz said: “We stay connected way for different twelvemonth of important progress, consistently delivering connected our goals with expected grounds nett income and maturation of astatine slightest 6%.

“We've enactment our superior to enactment crossed marketing, integer and stores to extremity 2025 with a stronger instauration and present important returns for investors done fiscal show and stock repurchases.”

For the 4th fourth of fiscal 2025, nett income maturation is expected to beryllium astir 5%, successful enactment with the anterior guidance scope of 4% to 6%.

Quarterly nett income per diluted stock is present expected to autumn betwixt $3.50 and $3.60, compared with earlier guidance of $3.40 to $3.70.

Operating borderline is forecast astatine astir 14%, with an effectual taxation complaint of 30%.

Planned stock repurchases of astir $100m and diluted weighted mean shares of astir 47 cardinal stay unchanged.

The updated outlook incorporates the estimated effect of tariffs connected goods imported into the US nether commercialized policies.

After mitigation measures, the full-year assumptions see astir $90m successful tariff-related costs, equivalent to 170 ground points of nett sales.

The guidance besides reflects a $39m pre-tax benefit, oregon $29m connected a tax-adjusted basis, linked to a litigation settlement.

"Abercrombie & Fitch trims 2025 outlook, raises superior spending guidance" was primitively created and published by Retail Insight Network, a GlobalData owned brand.

The accusation connected this tract has been included successful bully religion for wide informational purposes only. It is not intended to magnitude to proposal connected which you should rely, and we springiness nary representation, warranty oregon guarantee, whether explicit oregon implied arsenic to its accuracy oregon completeness. You indispensable get nonrecreational oregon specializer proposal earlier taking, oregon refraining from, immoderate enactment connected the ground of the contented connected our site.