Abercrombie & Fitch Earnings Rise, Raises Outlook

Abercrombie & Fitch Co. (ANF) reported stronger-than-expected demand and margin gains on Aug. 26, 2026, delivering a record second quarter. Resilient brand sales and tariff refunds led management to raise its full-year outlook and expand share repurchases.

Record Quarter Results

For the quarter ended Aug. 1, 2026, the company reported net sales of about $1,266.7 million, up 5% year over year, with comparable sales flat. GAAP diluted earnings per share rose to $4.17 from $2.91 a year earlier. Operating income reached approximately $252.7 million to $253 million, yielding an operating margin near 19.9%–20.0%. Net income attributable to Abercrombie & Fitch was about $183.7 million to $185.5 million.

The company recognized roughly $100 million in International Emergency Economic Powers Act (IEEPA) tariff refunds, recorded as a reduction in cost of sales. Management said the refunds added about $1.75 per diluted share and noted operating margin and EPS exceeded guidance even excluding this benefit.

Brand and regional performance was broad-based. Abercrombie-brand net sales rose 8%, marking the best second quarter on record, while Hollister sales increased 2%, also a record. By region, the Americas grew 5%, Asia-Pacific advanced 19%, and Europe, Middle East, and Africa returned to growth with a 2% gain.

Guidance and Capital Returns

In a Form 8-K filing, Abercrombie raised its full-year fiscal 2026 guidance, now targeting about 5% net sales growth, up from a prior range of 3% to 5%. Diluted EPS guidance increased to $13.10–$13.60 from roughly $10.20–$11.00. Operating margin guidance was set at about 14.5% to 15.0%. The outlook assumes approximately $120 million in full-year IEEPA tariff refunds and includes plans for at least $500 million in share repurchases.

Year to date, net sales totaled about $2.38 billion, and diluted EPS reached $5.59 compared with $4.47 in the prior year. Operating cash flow was approximately $313 million, and liquidity stood near $1.1 billion at quarter end. The company repurchased 2.0 million shares in the quarter for about $177 million and 3.2 million shares year to date for roughly $282 million, representing about 7% of beginning shares.

Management linked the stronger outlook and expanded buyback plan to the quarter’s results and cash position. Assessing how much of the upside stems from the one-time tariff refund versus underlying brand momentum will be key to evaluating the guidance’s sustainability.