Abercrombie & Fitch saw profit decline in its annual results, despite witnessing record sales in Q4.

The fashion retailer’s operating income fell 6 per cent year on year to £524m from January 2025 to the end of January 2026.

Net sales climbed 6 per cent to £3.95bn over the year. 

Operating income dropped 8 per cent to £177m for the fourth quarter, despite net sales rising 5 per cent to a “record” £1.25bn.

The Americas recorded the highest annual regional growth, with sales jumping 7 per cent to £3.21bn.

Revenues in the Europe, Middle East and Africa region rose 6 per cent to £613.3bn over the year, while sales in the Asia Pacific region increased 5 per cent to £118.1m.

Looking ahead, the clothing giant forecasts full year 2026 revenue growth of 3 to 5 per cent, including ‘the estimated impact of a 15 per cent tariff on all goods imported into the United States’.

Abercrombie & Fitch CEO Fran Horowitz said: “Our record fourth quarter net sales marked our thirteenth consecutive quarter of growth, with both operating margin and earnings per share at the high end of expectations we shared in early January.

“Reflecting on fiscal 2025, I’m proud of our accomplishments. We delivered record net sales with 6 per cent growth and achieved our third straight year of double-digit operating margins, all while continuing to strengthen the business through investments in marketing, stores, people, and digital capabilities. 

“Supported by $619 million in operating cash flow, we repurchased 5.4 million shares, representing 11 per cent of shares outstanding at the beginning of the year, reinforcing our commitment to long term value creation and shareholder returns.”

Horowitz said that the brand had entered fiscal 2026 with a “strong foundation” including “two globally relevant brands, a proven operating model, and a robust balance sheet, all managed by a world class team”.

She said that the business’s goals for the year were to “grow net sales, deliver another year of double-digit operating margin and grow earnings per share, all while making strategic investments that will fuel our long-term global ambition”.

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