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Abercrombie & Fitch Co.’s Global Push—Can EMEA & APAC Become the Next Growth Engines?

Abercrombie & Fitch reported its twelfth consecutive quarter of growth, achieving record net sales of $1.3 billion, an increase of 7% from the previous year. This growth showcased a balanced performance across regions, with notable success in the Americas and EMEA, despite challenges in the APAC region where sales declined 6%. The company also managed to increase its gross margin to 62.5% amidst a 210 basis point adverse impact due to tariffs. However, the operating margin declined to 12% from 13.5% the previous year, with tariffs notably impacting profitability. Abercrombie & Fitch’s strategic efforts to stay close to its customers via marketing and investments were evident as it repurchased $100 million worth of shares in the third quarter, adding to a total of $350 million repurchased year-to-date, representing 9% of its shares. The company is making strides in both its Abercrombie and Hollister brands, although their performances varied.