Abercrombie Raises 2025 Sales Forecast Amid High Demand

Abercrombie & Fitch raised its annual sales forecast, citing strong demand for Hollister dresses and denim jeans as consumers continue spending on apparel despite higher prices.

The retailer now expects net sales to grow between 5% and 7% for fiscal 2025, up from a previous estimate of 3% to 6%. Annual net income per share is projected in the range of US$10 (MX$186) to US$10.50, compared with earlier guidance of US$9.50 to US$10.50.

For the second quarter ended Aug. 2, Abercrombie reported net sales of US$1.21 billion, slightly above analysts’ expectations of US$1.20 billion, according to LSEG data. Adjusted earnings came in at US$2.32 per share, compared with estimates of US$2.30.

The company said growth at its namesake and Hollister brands has been driven by affluent female shoppers, particularly in the United States, who have shown resilience to price increases. Its denim jeans are priced at an average of US$100.

Abercrombie warned that increased tariffs on imports from Vietnam, Indonesia, Cambodia and India will add US$90 million in costs this year, up from a previous estimate of US$50 million. The company plans to manage inventory closely to mitigate the impact and support growth.

Shares rose about 1.5% in volatile trading following the announcement but remain down roughly 33% year to date.