Abercrombie & Fitch, Kohl's Q2 Results Top Estimates; Both Raise FY25 Outlook

Kohl's

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(RTTNews) - U.S. retailers Abercrombie & Fitch Co. (ANF) and Kohl's Corp. (KSS) reported on Wednesday results for the second quarter that topped analysts' estimates, with both Abercrombie & Fitch and Kohl's raising their outlook for the full-year 2025.

Following the results, Abercrombie & Fitch shares are slipping $3.59 or 3.71 percent to trade at $93.15 and Kohl's shares are soaring $2.56 or 19.59 percent to trade at $15.60 on the NYSE.

Specialty retailer Abercrombie & Fitch reported net income attributable to the company grew to $141.38 million or $2.91 per share from $133.17 million or $2.50 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $2.32 per share, compared to $2.50 per share last year.

Net sales for the quarter grew 7 percent to a record of $1.21 billion from $1.13 billion in the same quarter last year. Net sales were also up 6 percent on a constant currency basis. Total company comparable sales growth was 3 percent.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $2.30 per share on revenues of $1.20 billion for the quarter. Analysts' estimates typically exclude special items.

Net sales growth led by 8 percent growth in Americas and 12 percent growth in APAC, partially offset by 1 percent decline in EMEA. Hollister brands delivered its best ever second quarter net sales on growth of 19 percent, with Abercrombie brands down 5 percent.

Looking ahead to the third quarter, the company expects earnings in a range of $2.05 to $2.25 per share on net sales growth of 5 to 7 percent. Analysts expect earnings of $2.58 per share on revenues of $1.26 billion for the quarter.

For fiscal 2025, the company now projects earnings in a range of $10.00 to $10.50 per share on net sales growth of 5 to 7 percent. Previously, the company expected earnings in a range of $9.50 to $10.50 per share on net sales growth of 3 to 6 percent.

The Street is looking for earnings of $10.15 per share on revenues of $5.21 billion for the year.

Meanwhile, department store chain Kohl's reported that net income for the second quarter surged to $153 million or $1.35 per share from $66 million or $0.59 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.56 per share, compared to $0.59 per share last year.

Total revenue for the quarter declined to $3.55 billion from $3.73 billion in the same quarter last year.

Analysts expected earnings of $0.30 per share on revenues of $3.37 billion for the quarter.

Net sales were $3.35 billion, down 5.1 percent from last year's $3.53 billion. Comparable sales decreased 4.2 percent. Gross margin increased 28 basis points.

Michael Bender, Kohl's Interim CEO, said, "In addition to our top line progress, we managed the business with great discipline in the quarter. We were able to expand our gross margins, reduce our inventory, and lower our expenses, leading to solid second quarter earnings."

Looking ahead to fiscal 2025, the company now projects adjusted earnings in a range of $0.50 to $0.80 per share on a net sales decline of 5 to 6 percent, with comparable sales decline of 4 to 5 percent.

Previously, the company expected adjusted earnings in the range of $0.10 to $0.60 per share on a net sales decline of 5 to 7 percent, with comparable sales decline of 4 to 6 percent.

Analysts expect earnings of $0.63 per share on revenue decline of 4.26 percent to $14.73 billion for the year.

On August 12, 2025, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.125 per share, payable on September 24, 2025 to shareholders of record at the close of business on September 10, 2025.

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