Abercrombie & Fitch: Strong Turnaround Faces Growing Cost Pressures

Abercrombie & Fitch demonstrates solid sales growth, led by Hollister, but faces decelerating momentum and margin pressure. Net earnings for ANF declined 10.3% year-over-year, primarily due to higher supply chain costs and persistent tariff impacts. Comparable sales growth lags total sales, suggesting expansion relies on new markets rather than deepening existing customer bases.