Abercrombie & Fitch raised its annual profit forecast on Tuesday, buoyed by strong demand for its Hollister dresses and jackets as shoppers gravitate towards in-trend apparel during the crucial holiday season. The company’s shares jumped nearly 18% after it also projected a robust holiday quarter and reported better-than-expected third-quarter results.
Abercrombie’s net sales rose 7% to US $ 1.29 billion for the quarter ended 1st November, slightly above the US $ 1.28 billion forecast, according to LSEG data.
The clothing retailer, whose denim jeans average around US $ 100, has continued to benefit from a strong online presence and resilient spending among affluent consumers, even amid tariff-related uncertainties.
Rachel Wolff, an analyst at Emarketer, said the company’s success was being driven by “a sharp merchandising strategy and a consumer-centric focus,” which she noted had allowed it to maximise full-price sales and deepen customer engagement.
Its Hollister brand recorded 15% like-for-like sales growth in the third quarter, supported by the onset of the autumn season and solid back-to-school performance. Hollister accounts for more than half of Abercrombie’s total sales.
Wolff added that, like Gap and Levi Strauss, Abercrombie was benefiting from the “denim boom” and was likely to maintain this momentum as shoppers concentrate their spending on retailers offering a strong mix of style and affordability.
Abercrombie’s partnerships with global brands such as Crocs and the NFL have further strengthened its market appeal. Executives said during the post-earnings call that its Cyber Monday collaboration with Taco Bell was expected to draw additional shoppers to its stores.
For the fourth quarter, the retailer forecast sales growth between 4% and 6%, with profit projected in the range of US $ 3.40 to US $ 3.70 per share. The company now expects per-share net income for fiscal 2025 to be between US $ 10.20 and US $ 10.50, the midpoint of which exceeds its previous projection.
