Abercrombie & Fitch’s sales growth slowed in the fiscal second quarter, with the Abercrombie brand sales falling 5% and comparable sales dropping 11%. However, the success of the Hollister brand helped overall sales climb 7%, led by 19% growth at Hollister. The company beat Wall Street expectations on earnings and revenue.

For the full year, Abercrombie now expects sales to increase by 5% to 7%, higher than previous guidance. The company reported net income of $141 million for the quarter, up from $133 million a year earlier. Abercrombie also provided better-than-expected sales outlook for the current quarter.

Abercrombie’s profit outlook for the fiscal third quarter is lower than expected, with earnings per share anticipated to be between $2.05 and $2.25. The company expects its operating margin to be between 11% and 12%, lower than Wall Street expectations. Abercrombie tightened its earnings outlook for the full year.

The company’s growth has slowed at its namesake banner, but Hollister has been driving performance with its Y2K assortment. Abercrombie is focusing on new categories like dresses and athleisure to stimulate growth. The company recently announced a partnership with the NFL to boost sales and stay relevant with consumers.

Internationally, Abercrombie’s expansion efforts are paying off in the Asia-Pacific region, with sales growing 12% and international comparable sales climbing 3%. However, sales in Europe, the Middle East, and Africa saw a slowdown. The company is also expanding into wholesale for its Abercrombie Kids brand, aiming for growth in a competitive market.

Overall, better numbers are expected in the future as initiatives like overseas expansion continue. Abercrombie’s recent channel checks in London have been positive, but the brand will need to navigate competition and consumer trends to drive growth in the upcoming quarters.

Read more at CNBC: Abercrombie & Fitch (ANF) Q2 2025 earnings