Abercrombie Lifts Full-Year Sales and Profit Outlook
Second-quarter net sales hit a record $1.3 billion, up 5%, and the company now sees fiscal 2026 sales growth of around 5% and diluted earnings of $13.10 to $13.60 a share.
Abercrombie & Fitch Co. (ANF) reported record second-quarter net sales of $1.3 billion, up 5% from a year earlier, marking its 15th consecutive quarter of growth, after first-quarter sales of $1.1 billion rose 2%.
The apparel retailer also raised its full-year fiscal 2026 outlook. It now expects net sales growth of around 5%, up from a prior range of 3% to 5%, operating margin of 14.5% to 15.0%, and net income of $13.10 to $13.60 a share, versus a previous range of $10.20 to $11.00. Share repurchases are now expected to be at least $500 million, up from around $450 million.
Comparable sales were flat in the second quarter, versus a 1% decline in the first. Chief Executive Officer Fran Horowitz said growth was balanced across brands and regions, with accelerating momentum in the Americas and improving trends in EMEA.
Americas net sales were $1.02 billion, up 5%, after a 3% increase in the first quarter. APAC net sales were $44.2 million, up 19%. EMEA net sales were $202.0 million, up 2%, reversing a 10% decline in the first quarter.
Abercrombie brands posted net sales of $596.8 million, up 8%, after 3% growth in the first quarter. Hollister net sales were $669.9 million, up 2%, after a flat year-over-year result in the first quarter. Both brands achieved record second-quarter net sales.
Operating income was $253 million, including about $100 million of IEEPA tariff refunds recorded as a reduction in cost of sales, versus $207 million reported and $168 million adjusted non-GAAP a year earlier. Operating margin was 19.9%, versus 17.1% reported and 13.9% adjusted non-GAAP a year earlier. Diluted earnings were $4.17 a share, versus $2.91 reported and $2.32 adjusted non-GAAP a year earlier.
The tariff refunds added about $100 million to operating income, 790 basis points to operating margin, and $1.75 a share, lifting results above the May outlook of around 10% operating margin and $1.80 to $2.00 a share.
For the third quarter, the company expects net sales growth of 5% to 6%, net income of $2.90 to $3.20 a share, and at least $100 million of share repurchases, versus a second-quarter outlook of 2% to 4% sales growth and $1.80 to $2.00 a share.
The updated full-year outlook assumes IEEPA tariff refund favorability of around 220 basis points, none previously assumed, and an effective U.S. tariff rate of 10% to 12.5% for the remainder of fiscal 2026, updated from a 15% rate in the prior outlook. Capital expenditures are now expected at around $250 million, up from around $225 million.
In the second quarter the company repurchased 2.0 million shares for about $177 million. Year to date it had repurchased 3.2 million shares for $282 million, a 7% reduction in shares outstanding from the beginning of the year, with $568 million remaining on the authorization established in March 2025. Cash and equivalents were $628 million as of August 1, 2026. Liquidity, including borrowing available under the ABL facility, was approximately $1.1 billion.
Horowitz said the company is adding incremental growth levers across partnerships, distribution channels and product categories, and that it expects to grow sales and earnings per share for the year, underpinned by double-digit operating margins.