Abercrombie & Fitch raises outlook after strong Q2 performance

Apparel retailer Abercrombie & Fitch Co. (A&F) has announced its financial results for the second quarter ended August 1, 2026, delivering record net sales and marking its 15th consecutive quarter of growth. Following the results, the company raised its full-year revenue and operating margin outlook.

Net sales for the second quarter grew 5 percent year-over-year to 1.3 billion dollars, while comparable sales remained flat. Net sales growth across regions was led by the Americas, up 5 percent, while Asia-Pacific (APAC) grew 19 percent and Europe, Middle East and Africa (EMEA) rose 2 percent. Brand performance was driven by the namesake Abercrombie brands, which grew 8 percent, while Hollister Co. posted 2 percent growth.

A&F posts strong Q2

Operating income for the quarter reached 253 million dollars, up from 207 million dollars on a reported basis and 168 million dollars on an adjusted basis in the prior-year period. Operating margin expanded to 19.9 percent from 17.1 percent reported (and 13.9 percent adjusted) last year. Results included approximately 100 million dollars in refunds of International Emergency Economic Powers Act (IEEPA) tariffs, which were reflected as a reduction in cost of sales.

Net income per diluted share stood at 4.17 dollars, compared to 2.91 dollars reported and 2.32 dollars adjusted in the second quarter ended August 2, 2025.

A&F Co. chief executive officer, Fran Horowitz, said: “We delivered record second quarter net sales and our 15th consecutive quarter of growth, reflecting our teams’ continued focus on serving customers with compelling product, marketing, and experiences. Growth was balanced across our brands and regions, highlighted by accelerating momentum in the Americas and improving trends in EMEA”.

Horowitz added: “After a strong start to the year, we are updating our full-year sales and operating margin outlook and remain confident in our long-term growth path and investment priorities. Importantly, we are adding incremental growth levers across partnerships, distribution channels and product categories”.

Capital returns and outlook

The company has raised its fiscal 2026 full-year outlook and net sales are now expected to grow around 5 percent, compared to previous guidance of 3 percent to 5 percent growth. Operating margin is projected in the range of 14.5 percent to 15 percent, up from 12 percent to 12.5 percent. Net income per diluted share is expected to be between 13.10 dollars and 13.60 dollars, compared to the prior range of 10.20 dollars to 11 dollars.

For the third quarter of fiscal 2026, the company forecasts net sales growth in the range of 5 percent to 6 percent, an operating margin of 13 percent to 14 percent, and net income per diluted share between 2.90 dollars and 3.20 dollars.

Share repurchases target for the year ahead is increased to at least 500 million dollars from around 450 million dollars. During the second quarter of 2026, the company repurchased 2 million shares for approximately 177 million dollars. For the year-to-date period ended August 1, 2026, total share repurchases reached 3.2 million shares for 282 million dollars, representing a 7 percent reduction in outstanding shares since the start of the year. A&F Co. has 568 million dollars remaining under its share repurchase authorization.

For fiscal 2026 real estate activities, the company maintains its plan for approximately 30 net store openings, comprising 50 openings, 20 closures, and 80 remodels and right-sizes.