Abercrombie & Fitch Stock Soars 33% After Earnings. Has the Retailer Hit Bottom?

Abercrombie & Fitch stock has dropped 56% this year through Monday’s close. (Courtesy Abercrombie & Fitch)

Key Points

• Abercrombie & Fitch posted adjusted earnings for the fiscal third quarter of $2.36 a share, exceeding analysts’ expectations.
• Net sales reached $1.29 billion, meeting Wall Street forecasts, with comparable-store sales increasing 3% year over year.
• The company raised its fiscal-year net sales guidance to a 6% to 7% increase, up from the previous 5% to 7% range.

Shares of Abercrombie & Fitch soared Tuesday after the retailer’s quarterly earnings breezed past Wall Street expectations.

The stock jumped 33% to $87.30, putting it on pace for its largest single-day gain since 2012, according to Dow Jones Market Data.

Abercrombie posted adjusted earnings of $2.36 a share for its fiscal third quarter, surpassing analysts’ consensus call for $2.17, according to FactSet. Net sales totaled $1.29 billion, in line with Wall Street’s expectations, with comparable-store sales up 3% from the prior year.

The retailer has had a brutal 2025, with shares falling 56% through Monday’s close due in part to tepid discretionary spending and headwinds from tariffs. Tuesday’s print provides a glimmer of hope for investors, even if the stock is still on track for its worst year since 2016.

Hollister brand comparable sales rose 15% from the year before, making up for a 7% drop in the Abercrombie brand. The Abercrombie brand’s struggles worry Wall Street.

“We attribute the stock’s decline in recent months to A&F concerns, given promotionality and expectations of a guide cut,” wrote Raymond James analyst Rick Patel in a research note. “While A&F missed, we believe it was less-bad than buy-side expectations.”

Raymond James reiterated an Outperform 2 rating—one tick below Strong Buy.

Abercrombie raised the low end of its fiscal-year guidance. The company now forecasts net sales to rise 6% to 7% this year, up from a previous range of 5% to 7%. Net income per share is expected to be between $10.20 and $10.50, compared with an earlier range of $10 to $10.50.

Those numbers put Abercrombie’s fourth-quarter outlook roughly in line with Wall Street’s expectations, Raymond James pointed out.

Write to Nate Wolf at nate.wolf@barrons.com