Abercrombie & Fitch Co., the American apparel retailer behind its flagship Abercrombie and teen-focused Hollister brands, reported that its 2025 performance remained solid but suggested growth is moderating as the company looks ahead to 2026.
For the fourth consecutive year, Abercrombie & Fitch opened more stores than it closed, reflecting a continued focus on selective expansion. In 2026, the company plans to open approximately 30 net new stores while remodelling or resizing about 70 existing locations to optimize performance and customer experience.
“I think Q4 defines a balanced performance, with growth across brands, regions, and channels,” CEO Fran Horowitz said. “That is definitely our objective in 2026.”
The company’s turnaround, particularly at its Abercrombie brand, has delivered strong sales in recent years, but analysts note that the extraordinary growth from previous initiatives is now levelling off. Neil Saunders, Managing Director at GlobalData, said: “Overall, Abercrombie & Fitch is driving more revenue through the business and is reaching record levels in most quarters. Both main brands continue to resonate with customers, providing opportunities for expansion and topline growth.”
Abercrombie & Fitch expects full-year 2026 net sales to rise three to five percent, with an operating margin of 12 percent to 12.5 percent. Analysts at Jefferies, led by Corey Tarlowe, noted this reflects “moderating growth and margin normalization, with tariffs a near-term headwind.”
Looking ahead, Saunders added that acquiring or launching a new brand could provide additional growth potential, though he noted neither is immediately necessary.
Executives also flagged external risks. Horowitz highlighted ongoing unrest in the Middle East, which could disrupt some sourcing operations and affect franchise and joint venture partners. “Our focus continues to be on the safety and well-being of associates and stores in the region,” she said.
