Abercrombie & Fitch Co. - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.66%.
Did ANF Beat Earnings? Q2 2026 Results
Abercrombie & Fitch extended its winning streak to 11 consecutive quarters of growth in Q2 fiscal 2026, posting record second-quarter revenue of $1.21 billion, up 6.6% year-over-year and edging past the $1.20 billion consensus estimate by 0.78%, while adjusted EPS of $2.32 topped the $2.30 analyst forecast by 0.93%. The standout driver was a sharply divergent brand picture, with Hollister delivering its best-ever second quarter on 19% net sales growth fueled by teen back-to-school demand, even as Abercrombie brands slipped 5% against a tough 26% prior-year comparison. The results further cement the retailer's reputation for strategic adaptability, a quality that has earned it recognition among industry observers as one of retail's more resilient operators. Looking ahead, management raised its full-year net sales growth outlook to 5-7% from 3-6%, with EPS now guided to $10.00-$10.50, even as the company absorbs an estimated $90 million in net tariff headwinds, equivalent to 170 basis points of net sales, tied to sourcing from Vietnam, Cambodia, India, and China.
- Hollister brands delivered best-ever Q2 net sales on 19% growth driven by strong summer and back-to-school demand
- Meaningful teen customer engagement drove Hollister growth
- Americas segment growth of 8% led geographic performance
- APAC segment grew 12% year-over-year
- Comparable sales grew 3% on constant currency basis
- Litigation settlement of $39 million pre-tax boosted GAAP operating income
“We delivered record second quarter net sales, exceeding our expectations, with 7% growth to last year. We continued to drive meaningful engagement with our teen customer in Hollister brands, growing 19% on strong summer and back-to-school demand. While we made progress on key inventory initiatives by leveraging promotions and testing new product concepts, Abercrombie brands net sales were down 5%, lapping 26% growth in the prior year. On the bottom line, we exceeded our second quarter profitability expectations, while also returning $50 million to shareholders through our sixth consecutive quarter of share repurchases.”
Abercrombie & Fitch CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2025, the company raised its full-year net sales growth outlook to 5-7% (from 3-6%), with operating margin of 13.0-13.5% (narrowed from 12.5-13.5%), effective tax rate around 30%, and EPS of $10.00-$10.50 (from $9.50-$10.50). The outlook incorporates approximately $90 million of net tariff expense (170 basis points). Share repurchases are expected at around $400 million with diluted weighted average shares around 49 million. Capital expenditures are now approximately $225 million (up from $200 million) with plans for approximately 40 net store openings (60 openings, 20 closures) and 40 remodels. For Q3 2025, the company expects net sales growth of 5-7%, operating margin of 11-12%, effective tax rate around 31%, EPS of $2.05-$2.25, share repurchases of at least $50 million, and diluted weighted average shares around 48 million.
ANF YoY Financials
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ANF Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.