01:20 PM EDT, 08/27/2025 (MT Newswires) -- Abercrombie & Fitch ( ANF ) upgraded its fiscal 2025 outlook on Wednesday after the apparel retailer's second-quarter results exceeded Wall Street's estimates, though earnings fell year over year.

The company now expects full-year earnings between $10 and $10.50 per share, lifting the middle point versus its prior outlook of $9.50 to $10.50.

Abercrombie & Fitch ( ANF ) is now guiding full-year sales to grow 5% to 7%, faster than its previous growth outlook of 3% to 6%. Analysts polled by FactSet are looking for sales to improve to $5.22 billion from the previous year's $4.95 billion.

"We entered the second half with good momentum from the second quarter," Chief Financial Officer Robert Ball told analysts on a call, according to a FactSet transcript.

The revised guidance includes the estimated impact of tariffs in place as of Monday, including 50% for India and 30% for China, the company said. Abercrombie & Fitch ( ANF ) expects tariffs to cost about $90 million this year.

For quarter ended Aug. 2, net sales grew 7% year over year to a record $1.21 billion, narrowly beating the $1.20 billion consensus forecast. Adjusted EPS fell to $2.32 from $2.50 a year earlier, but was ahead of analysts' $2.30 estimate.

Net sales rose 8% to $974.2 million in the Americas and 12% to $37.2 million in the Asia-Pacific region. Revenue in the Europe, the Middle East and Africa market fell 1%.

By brand, Hollister net sales surged 19% to $656.7 million, while Abercrombie revenue dropped 5% to $551.9 million.

"Our strong first half and start to the third quarter gives us confidence to increase our full-year net sales forecast, building on a record 2024," Chief Executive Fran Horowitz told analysts.

For the fiscal third quarter, the company expects EPS of $2.05 to $2.25 and revenue growth of 5% to 7%. Analysts are currently projecting revenue to improve to $1.27 billion from $1.21 billion in the year-ago period.

Abercrombie & Fitch ( ANF ) shares were down 0.6% in Wednesday trading. The stock has fallen 36% so far this year.

Price: 96.55, Change: -0.19, Percent Change: -0.20