US' Abercrombie raises FY25 sales outlook slightly after 8% Q1 surge
The operating income of the company reached $102 million, though the margin narrowed to 9.3 per cent from 12.7 per cent in the same period a year earlier. Earnings per diluted share stood at $1.59, down from $2.14 in Q1 FY24.
Abercrombie & Fitch Co has reported net sales of $1.1 billion in Q1 FY25, up 8 per cent YoY, led by 22 per cent growth in Hollister brand. The operating margin declined to 9.3 per cent, with EPS at $1.59. EMEA sales rose 12 per cent. FY25 outlook sees lowered EPS and margin guidance, steady capex of $200 million, and Q2 sales growth forecast at 3â€'5 per cent.
The company saw broad-based regional growth, with Europe, the Middle East, and Africa (EMEA) sales rising 12 per cent, Americas up 7 per cent, and Asia-Pacific (APAC) improving 5 per cent, Abercrombie said in a press release.
Brand-wise, Hollister led the performance with a 22 per cent YoY increase in net sales, while Abercrombie brands declined 4 per cent, following a strong 31 per cent surge in the same quarter last fiscal.
'We delivered record first quarter net sales with 8 per cent growth to last year. This was above our expectations and was supported by broad-based growth across our three regions. Hollister brands led the performance with growth of 22 per cent, achieving its best ever first quarter net sales, while Abercrombie brands net sales were down 4 per cent against 31 per cent sales growth in 2024,' said Fran Horowitz, chief executive officer (CEO) at Abercrombie & Fitch Co.
'We exceeded our expectations on the bottom line as well, with operating margin of 9.3 per cent and earnings per share of $1.59. We also returned excess cash to shareholders through share repurchases totalling $200 million in the quarter, marking our fifth consecutive quarter of share repurchases,' added Horowitz. 'As we navigate the current environment, we have the team and proven capabilities in place to read, react and adapt, while continuing to deliver for customers globally. Importantly, with a strong foundation, we remain on offense and focused on top-line growth, store expansion, and investments in digital and technology that will enable sustainable long-term success.'
Abercrombie has revised its fiscal 2025 outlook and now it anticipates net sales growth in the range of 3 to 6 per cent, slightly higher than its previous 3 to 5 per cent forecast. However, it has cut its projected operating margin to 12.5–13.5 per cent from 14–15 per cent and lowered its net income per diluted share estimate to between $9.5 and $10.5, down from $10.4 to $11.4.
Capital expenditures (capex) are expected to remain at approximately $200 million, in line with its previous guidance. It also plans for 60 store openings, 20 closures, and 40 remodels or right-sizings, added the release.
For the second quarter (Q2) FY25, Abercrombie projects net sales growth of 3 to 5 per cent, an operating margin of 12 to 13 per cent, and earnings per diluted share of $2.1 to $2.3.
Fibre2Fashion News Desk (SG)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
19 minutes ago
- India.com
Why Nikki Haley's Advice To Trump Over Tariffs Could Shift How America Handles India, China And Russian Oil
Washington DC: Former U.S. Ambassador to the United Nations Nikki Haley has slammed President Donald Trump for announcing plans to 'very substantially' raise tariffs on Indian imports, following New Delhi's continued oil purchases from Russia. In a post on X, she said that while India's oil trade with Russia is a valid concern, China, which is currently the largest buyer of Russian and Iranian oil, has been granted a 90-day tariff pause. 'India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don't give China a pass and burn a relationship with a strong ally like India,' she posted. India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don't give China a pass and burn a relationship with a strong ally like India. — Nikki Haley (@NikkiHaley) August 5, 2025 Trump had said he would raise tariffs on Indian goods 'very substantially' within 24 hours, calling out India's continued energy trade with Russia. 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,' he wrote in an earlier post on Truth Social. He further added, 'They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.' Trump also heighted, in an interview with CNBC, that India's existing tariffs on American imports were too high, although he did not specify a revised rate. India's Ministry of External Affairs issued a response shortly after the U.S. announcement, calling the proposed action 'unjustified and unreasonable'. MEA spokesperson Randhir Jaiswal said the decision to import oil from Russia came after traditional suppliers shifted exports to Europe during the Ukraine conflict. He added that the United States had previously acknowledged India's decision as necessary for global energy market stability. He clarified that India's energy imports serve domestic needs and ensure stable pricing for consumers. 'This is a necessity compelled by the global market situation,' he said. He emphasised that countries raising concerns about India's trade with Russia are themselves engaged in similar commerce. The European Union's bilateral goods trade with Russia stood at 67.5 billion euro in 2024, with an additional 17.2 billion euro in services recorded the year before. EU imports of liquefied natural gas from Russia reached a record 16.5 million tonnes this year. The data also showed that Europe's imports from Russia included chemicals, fertilizers, mining products, steel and machinery. Meanwhile, the United States continues to import Russian uranium hexafluoride for nuclear power, palladium for electric vehicles and other industrial goods. Jaiswal reiterated that India's trade decisions are based on market dynamics and national priorities. 'Our ties with any country stand on their merit and should not be seen from the prism of a third country,' he said. He also added that India and Russia maintain a 'steady and time-tested partnership'. In late July, the United States had announced a 25 percent reciprocal tariff on Indian goods. Around the same time, America and China agreed to a temporary reduction in their own tariffs under a 90-day pause, during which U.S. tariffs were brought down from 145% to 30% and Chinese duties from 125% to 10%, according to Al Jazeera. The discussion around tariffs and trade continues at a time when concerns over rising global crude prices persist. Analysts have warned that any major disruption in oil supply lines, including India's imports from Russia, could impact global energy markets.
Economic Times
19 minutes ago
- Economic Times
Trump escalates threat level, says more tariff in 24 hours
Synopsis President Trump threatened to substantially increase tariffs on Indian imports due to continued Russian oil purchases, despite India's strong response and accusations of unfair targeting by the US and EU. India defends its actions as safeguarding national interests and economic security, highlighting its growing economy amid global uncertainty. Trade negotiations continue with scheduled talks in August. AP New Delhi: US President Donald Trump Tuesday threatened to 'very substantially' increase the 25% tariff on imports from India over continued purchases of Russian oil, maintaining his aggressive posture. This comes a day after New Delhi's strong response to comments by him in a similar vein over the past week or so. 'India has not been a good trading partner because they do a lot of business with us, but we don't do business with them. So we settled on 25%, but I think I'm going to raise that rate quite substantially in the next 24 hours,' Trump said in an interview to CNBC that was aired on Tuesday evening in India. The US President reiterated his claim that India has the highest tariffs. 'They're buying Russian oil and fuelling the war machine. If they are going to do that, I'm not going to be happy,' he said, adding that the main sticking point remained that India's tariffs were too high. 'With India, what people don't like to say is, they have the highest tariffs of anybody.' On Monday, India reacted strongly after Trump threatened substantial tariffs for purchasing Russian oil and 'selling it in the open market for big profits.'This is helping to fund Russia's war against Ukraine, according to Trump. India had accused the US and the European Union of unfairly 'targeting' India when they themselves were importing essential material from Russia. 'The targeting of India is unjustified and unreasonable,' the ministry of external affairs had said. 'Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.' India also pointed out that the US had initially backed India's purchases from Russia 'for strengthening global energy markets stability.'Trump had last week announced a 25% duty on all Indian goods, in addition to a penalty for buying a 'vast majority' of Russian military equipment and crude oil. The US President has targeted India and Russia for their close ties and said the two can take their 'dead economies down together.' India had responded by reiterating that it will take all necessary steps to safeguard its national interest, besides pointing out that its economy — the fastest-growing major one — was a bright spot amid global uncertainty. Trump had earlier threatened an additional 10% tariff on BRICS members, which he said were aligning themselves against the US. His threats come amid the two sides negotiating a bilateral trade agreement (BTA), the first part of which is planned to be concluded by October. American trade negotiators are scheduled to visit India for the sixth round of talks on August 25-30. The US was India's largest export destination in FY25 with shipments valued at $87 billion, accounting for about a fifth of the $437 billion total.
India.com
an hour ago
- India.com
Can A Country Survive Without America? These Nations Already Already Do Without U.S. Ties
New Delhi: The global order has long revolved around the United States. Its economic weight, military power and diplomatic reach have shaped how countries operate. But a handful of nations have taken a different path. They have either walked away from Washington or never entered the room. And despite years of pressure, sanctions and isolation, they continue to function. Among them, Iran stands out. For decades, Tehran has maintained one of the most antagonistic relationships with Washington. The rift deepened after the Islamic Revolution of 1979, which led to sweeping sanctions that strangled its economy. But Iran did not collapse. Instead, it shifted its focus inward, developed its oil and gas sector and invested in domestic industries. It strengthened ties with countries like Russia, China and Turkey to keep its economy running. In 2024, U.S. President Donald Trump intensified tariff threats against several countries. India found itself on Washington's radar. He accused New Delhi of buying large quantities of crude oil from Russia and selling it in global markets at a profit. He announced a 25% tariff on Indian trade and lashed out on Truth Social, claiming New Delhi had no concern for the war in Ukraine. India issued a strong rebuttal. Responding to the threat, the Ministry of External Affairs (MEA) made it clear that India would act in its national interest. MEA spokesperson Randhir Jaiswal explained that India had to turn to Russian oil because European suppliers had redirected their energy exports in the aftermath of the Ukraine conflict. At that time, Washington had supported India's decision. 'This is not a matter of choice. It was a response to the global market's limitations,' he said and pointed out the irony that countries that continue to criticise India are themselves engaged in trade with Russia, even when they face no strategic compulsion to do so. This debate has brought up a question: can a nation survive without engaging with the United States? Are there countries that have built an economic and political existence independent of American support? There are. Iran, Cuba, North Korea and Venezuela have managed to chart out such paths. Their experiences are far from smooth. Each of them has faced significant hardships. Still, they have not collapsed under pressure. Instead, they have sought out new alliances, developed local industries and found ways to adapt. After decades of sanctions, Iran signed a 25-year strategic agreement with China. The deal covers Chinese investments in Iran and steady oil purchases. Tehran also expanded military and economic ties with Moscow. Its domestic defence and technology sectors have grown despite external isolation. Its missile and drone programmes are homegrown. The country's education and healthcare systems, while strained, continue to function. Cuba has followed its own model. Since the 1960s, it has faced stringent U.S. sanctions. After embracing communism under Fidel Castro, the country was cut off from American trade. But it built a healthcare system that earned global praise. Cuban doctors and vaccines have been exported to countries across Latin America and Africa. Its tourism and biotechnology have brought in revenue. Partnerships with Russia, Venezuela and other regional allies have helped it remain afloat. North Korea offers a different case. There are no direct economic ties between Pyongyang and Washington. The two countries remain adversaries. Under Kim Jong Un, North Korea has prioritised its nuclear weapons programme and missile development. It has relied heavily on China for energy, food and essential supplies. Russia has also provided limited support. Despite economic difficulties, North Korea has continued to function under its rigid political system. Venezuela, too, has faced American sanctions, especially targetting its oil exports. But Caracas responded by strengthening its ties with Iran, China and Russia. It used its vast oil reserves as leverage, exchanging energy for investment and support. Each of these countries has followed a different model. Some turned to authoritarianism, while others leaned on regional alliances. But all have demonstrated that an economic existence without the United States, while difficult, is not impossible. These examples do not suggest that global engagement with Washington lacks value. The United States remains the world's largest economy and a central force in international diplomacy. But these nations show that with the right strategies, strong internal planning and alternative partnerships, survival outside the American orbit is not only possible, but it is already happening.
