Abercrombie & Fitch (ANF) Q2 Earnings Beat, Shares Jump 3.3% Despite Mixed Outlook

Abercrombie & Fitch reported Q2 results that exceeded Wall Street's expectations, with GAAP earnings of $2.91 per share on revenue of $1.21 billion. Shares jumped 3.3% but cooled down to a 0.8% decrease from the previous close. The company's shares are volatile and have had 37 moves greater than 5% over the last year. Despite a mixed outlook, investors focused on the solid execution in the reported quarter, which featured 6.6% YoY sales growth.

Abercrombie & Fitch Co. (ANF) reported its second-quarter (Q2) results on Wednesday, exceeding Wall Street's expectations. The specialty retailer posted GAAP earnings of $2.91 per share on revenue of $1.21 billion, leading to a 3.3% increase in shares but a subsequent 0.8% decrease from the previous close. Despite a mixed outlook, investors focused on the solid execution in the reported quarter, which featured 6.6% year-over-year (YoY) sales growth.

The company's net income attributable to the company grew to $141.38 million or $2.91 per share from $133.17 million or $2.50 per share in the prior-year quarter. Excluding items, adjusted earnings for the quarter were $2.32 per share, compared to $2.50 per share last year. Net sales for the quarter grew 7% to a record of $1.21 billion from $1.13 billion in the same quarter last year. Net sales were also up 6% on a constant currency basis. Total company comparable sales growth was 3%.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $2.30 per share on revenues of $1.20 billion for the quarter. Analysts' estimates typically exclude special items. Net sales growth was led by 8% growth in Americas and 12% growth in APAC, partially offset by a 1% decline in EMEA. Hollister brands delivered its best ever second quarter net sales on growth of 19%, with Abercrombie brands down 5%.

Looking ahead to the third quarter, the company expects earnings in a range of $2.05 to $2.25 per share on net sales growth of 5 to 7%. Analysts expect earnings of $2.58 per share on revenues of $1.26 billion for the quarter. For fiscal 2025, the company now projects earnings in a range of $10.00 to $10.50 per share on net sales growth of 5 to 7%. Previously, the company expected earnings in a range of $9.50 to $10.50 per share on net sales growth of 3 to 6%.

Meanwhile, department store chain Kohl's Corp. (KSS) reported that net income for the second quarter surged to $153 million or $1.35 per share from $66 million or $0.59 per share in the prior-year quarter. Total revenue for the quarter declined to $3.55 billion from $3.73 billion in the same quarter last year. Analysts expected earnings of $0.30 per share on revenues of $3.37 billion for the quarter. Net sales were $3.35 billion, down 5.1% from last year's $3.53 billion. Comparable sales decreased 4.2%. Gross margin increased 28 basis points.

Michael Bender, Kohl's Interim CEO, said, "In addition to our top line progress, we managed the business with great discipline in the quarter. We were able to expand our gross margins, reduce our inventory, and lower our expenses, leading to solid second quarter earnings."

Looking ahead to fiscal 2025, the company now projects adjusted earnings in a range of $0.50 to $0.80 per share on a net sales decline of 5 to 6%, with comparable sales decline of 4 to 5%. Previously, the company expected adjusted earnings in the range of $0.10 to $0.60 per share on a net sales decline of 5 to 7%, with comparable sales decline of 4 to 6%.

Analysts expect earnings of $0.63 per share on revenue decline of 4.26% to $14.73 billion for the year. On August 12, 2025, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.125 per share, payable on September 24, 2025 to shareholders of record at the close of business on September 10, 2025.

[1] https://www.rttnews.com/3569520/abercrombie-fitch-kohl-s-q2-results-top-estimates-both-raise-fy25-outlook.aspx
[2] https://www.cnbc.com/2025/08/27/abercrombie-fitch-anf-q2-2025-earnings.html
[3] https://www.quiverquant.com/news/Abercrombie+%26+Fitch+Co.+Reports+11th+Consecutive+Quarter+of+Growth+with+Record+Net+Sales+of+%241.2+Billion+in+Q2+2025