Europe Weakens, APAC Booms: Is Abercrombie's Global Mix an Advantage?

Abercrombie & Fitch Co.’s ANF second-quarter fiscal 2025 results underscored a tale of two regions as its global footprint delivered a mixed performance. The company reported a year-over-year net sales decline of 1% in EMEA, pressured by softness across European markets despite continued strength in the U.K. 

Management noted that Germany remained a key drag, though the company is actively exporting successful U.K. playbooks across the region to stabilize performance. Comparable sales in EMEA also fell 5%, reflecting a challenging consumer backdrop and third-party channel headwinds. However, heavy investments in marketing, new stores and product localization signal confidence in the region’s long-term potential.

In contrast, APAC continued to shine. The region delivered a 12% year-over-year sales increase in the second quarter, supported by solid cross-channel demand and positive comparable sales. Traffic remained strong across both physical and digital channels. The company is increasingly leaning into lifestyle storytelling and product strategies that resonate with the APAC consumer. This consistency has helped APAC emerge as an important growth engine for the business, providing reliable momentum even as certain Western markets moderate.

Taken together, the contrasting regional outcomes highlight why Abercrombie’s diversified global mix is a strategic advantage. With sourcing spread across 16 countries and balanced exposure across the Americas, Europe and Asia, the company has built a portfolio that can absorb localized volatility.

Strength in APAC and resilient momentum in the Americas are helping offset temporary European softness, while a flexible supply chain and strong brand equity give the company room to adapt. As tariffs and macro pressures evolve, ANF’s geographic diversification, supported by strong customer traffic, store expansion and compelling brand campaigns, positions it to keep delivering steady growth while navigating uneven regional demand.

ANF’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have lost 23.7% in the past three months compared with the industry’s decline of 0.3% and against the broader Retail-Wholesale sector’s rise of 0.7%. The stock has also underperformed the S&P 500’s 7.8% rally in the same period.

ANF Stock's Past 3-Month Performance

Is ANF a Value Play Stock?

ANF currently trades at a forward 12-month P/E ratio of 7.25X, which is lower than the industry average of 17.02X and notably below the sector average of 25.05X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader Retail-Wholesale sector.

Better-Ranked Stocks to Consider

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The Zacks Consensus Estimate for American Eagle’s fiscal 2025 sales and earnings indicates declines of 0.1% and 35.6%, respectively, from the year-ago actuals. The consensus estimate for earnings has moved up by a penny in the past seven days.

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The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings indicates growth of 16.2% and 20.5%, respectively, from the year-ago actuals. The consensus estimate for earnings has moved up 6.9% in the past 30 days.

Tapestry Inc. TPR is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. It carries a Zacks Rank #2 at present. TPR delivered a trailing four-quarter earnings surprise of 11%, on average.

The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 5.4% and 10%, respectively, from the prior-year reported levels. The consensus estimate for earnings has moved up 2.4% in the past seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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