Abercrombie & Fitch Stock Explodes: Earnings Beat Driven by Hollister's Explosive Growth

Abercrombie & Fitch (ANF) saw its stock jump 37% on Tuesday after releasing third-quarter results that far exceeded analyst projections. The surge was largely attributed to exceptional momentum at its Hollister division, which helped counter slower growth at the flagship Abercrombie label.

For the quarter ended November 1, the company reported revenue of $1.29 billion, a 7% increase from the prior year and slightly above the $1.28 billion analysts had expected. Adjusted earnings reached $2.36 per share, well ahead of the consensus estimate of $2.16.

Hollister was the standout performer. The brand continued to connect with younger shoppers who tend to be more value-focused, generating comparable-store sales growth of roughly 15% (some sources report 16%) and revenue of $673.27 million. This robust performance was particularly important given that comparable sales for the Abercrombie brand dropped around 7% (some reports show a smaller 2% decline), with total Abercrombie revenue falling to $617.35 million.

Even with uneven brand performance and increased costs tied to tariffs, Abercrombie & Fitch maintained solid profitability, reporting a 12% operating margin for the quarter.

The company also struck an upbeat tone for the upcoming holiday period. Executives projected fourth-quarter net sales growth between 4% and 6%, along with expected earnings of $3.40 to $3.70 per share. CEO Fran Horowitz noted that Abercrombie brand sales are likely to remain about flat this quarter, meaning Hollister will continue carrying most of the company’s momentum. For fiscal 2025, the retailer lifted its annual sales growth outlook to 6% to 7%.

The sharp rise in the stock price came despite the shares having fallen roughly 56% earlier in the year. Following the earnings release, trading volume surged more than 300%, putting the stock among the 100 most actively traded names in the U.S. market. Although the stock remains down significantly for the year as a whole, it is now more than 10% higher in 2025.