The Abercrombie turnaround took Abercrombie & Fitch Co. to record fiscal 2025 net sales of $5.3 billion, the first year above $5 billion in company history, after Fran Horowitz became CEO in February 2017. The rebuild combined a broader product range, a lifestyle positioning and a second brand, Hollister, that now leads growth.
What is the Abercrombie turnaround?
The Abercrombie turnaround is the multi-year recovery of Abercrombie & Fitch Co. under CEO Fran Horowitz, who has served since February 2017, according to WWD. FashionUnited reports that Horowitz joined the company in 2014 as brand president of Hollister, when sales were falling by double digits and stores were closing.
FashionUnited also reports that revenue sat at roughly $3.30 billion when Horowitz took over, stayed flat for years, and then rose to about $4.28 billion in fiscal 2023, $4.95 billion in fiscal 2024 and $5.27 billion in fiscal 2025, in its profile of Horowitz. It places the inflection in the fourth quarter of 2019.
How big is the Abercrombie recovery?
The Abercrombie recovery produced three record years in a row for net sales. The table collects the figures the company reported on its earnings calls.
| Fiscal year | Net sales | What the company reported |
|---|
| 2023 | About $4.28 billion | FashionUnited figure; Horowitz said the year proved the company's potential |
| 2024 | $4.95 billion, up 16% | Operating margin of 15% and earnings per share of $10.69; Abercrombie brands up 16% and Hollister up 15%, per the fourth quarter 2024 call |
| 2025 | $5.27 billion, up 6% | Fourth quarter net sales of $1.67 billion, up 5%, per a summary of the fourth quarter 2025 call |
What did Horowitz change?
Horowitz changed the target from being cool to being a lifestyle brand. She told the Fortune Most Powerful Women Summit that "cool" is a tough word, according to Fortune. Fortune reports that sales of the Abercrombie brand nearly doubled to $2.6 billion between 2019 and 2024.
FashionUnited describes her method as listening to customers and then acting, and says denim sales have set records since. Fortune also reports that Horowitz sees the company's NFL deal as a way to reach millions of fans, about half of them women, as customer acquisition and brand awareness. A strategy built on a broader audience and clear product categories is easier to test than one built on a mood.
Which Abercrombie brand carries the growth now?
Hollister carried the growth in most of fiscal 2025, while the Abercrombie brand returned to growth in the fourth quarter. The company's quarterly releases show the split.
| Fiscal 2025 quarter | Abercrombie brands | Hollister brands |
|---|
| First quarter | Down 4% | Up 22% |
| Second quarter | Down 5% | Up 19% |
| Third quarter | Down 2% | Up 16% |
| Fourth quarter | Up 4% | Up 6% |
The first three rows come from the company's first quarter, second quarter and third quarter releases. In the fourth quarter call, Horowitz said the company achieved its goal of returning the Abercrombie brand to growth, with both brands setting fourth quarter records.
Regional results were mixed in the third quarter release, with the Americas up 7%, Europe, the Middle East and Africa up 7%, and Asia Pacific down 6%. On the fourth quarter call, Horowitz said the Americas grew 7% for the full year on cross-channel traffic, driven by marketing across brands and continued store expansion, and that growth was balanced across regions, brands and channels in the quarter.
What risks does the Abercrombie turnaround face?
The main risks are slower growth and tariff cost. The company estimated net tariff expense of about $90 million for fiscal 2025 in its second and third quarter releases. FashionUnited reports that first quarter fiscal 2026 net sales rose 2% to $1.11 billion and operating margin narrowed to 8% from 9.3%, still ahead of the company's own outlook, and that the stock has fallen well below its 2024 peak.
What can brand marketers take from Abercrombie?
Brand marketers can take three checks from Abercrombie, each tied to a figure the company reported.
| Check | Abercrombie example | Figure |
|---|
| Aim at a lifestyle, not a mood | Horowitz's "lifestyle" positioning | Abercrombie brand sales nearly doubled from 2019 to 2024, per Fortune |
| Run two brands for two customers | Abercrombie for adults, Hollister for teens | Hollister up 16% to 22% in the first three quarters of fiscal 2025, per company releases |
| Report the slow brand honestly | Abercrombie brands down in three quarters, up 4% in the fourth | Fourth quarter return to growth, per the fourth quarter call |
For related reads, see Everything-PR's fashion PR overview, the Jaguar Copy Nothing rebrand and the New Balance marketing story.
The Abercrombie turnaround shows a brand rebuilding by naming a broader customer and then reporting each brand's result separately. The next test is whether growth holds as tariffs and slower first quarter sales weigh on margin.
