Abercrombie & Fitch Co. Reports Second Quarter Fiscal 2026 Results

• Record second quarter net sales of $1.3 billion, up 5% to last year, 15th consecutive quarter of growth
• Net sales growth across regions with Americas up 5%, APAC up 19%, and EMEA up 2%
• Best-ever second quarter sales across brands, led by Abercrombie brands up 8%, with Hollister up 2%
• Operating margin of 20%, and earnings per diluted share of $4.17, both above outlook in excess of IEEPA tariff refund benefit of approximately $100 million on a pre-tax basis and $1.75 per diluted share; impact presented in table below
• $177 million in shares repurchased in the quarter; year-to-date share repurchases of $282 million totaling 7% of shares outstanding at beginning of the year
• Updates full-year outlook to net sales growth of around 5%, net income per diluted share of $13.10 to $13.60, share repurchases increased to at least $500 million
• Third quarter outlook of net sales growth of 5% to 6%, net income per diluted share of $2.90 to $3.20, at least $100 million in share repurchases

NEW ALBANY, Ohio, Aug. 26, 2026 (GLOBE NEWSWIRE) — Abercrombie & Fitch Co. (NYSE: ANF) today announced results for the second quarter ended August 1, 2026. These compare to results for the second quarter ended August 2, 2025. Descriptions of the use of non-GAAP financial measures and reconciliations of GAAP and non-GAAP financial measures accompany this release.

Fran Horowitz, Chief Executive Officer, said, “We delivered record second quarter net sales and our 15^th 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. Both brands achieved record second quarter net sales, led by 8% growth at Abercrombie brands. We also delivered on the bottom line, with both operating margin and earnings per diluted share above our outlook, in excess of the tariff refunds benefit. Year-to-date, we continued to use our strong balance sheet to invest in the business across stores, digital, technology and marketing, while also repurchasing 7% of shares outstanding as of the beginning of the year.

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. For the year, we expect to grow sales and earnings per share, underpinned by double-digit operating margins, while delivering strong cash flow and returns of cash to shareholders through at least $500 million of share repurchases. We are so excited about the foundation we’ve built and the significant growth opportunities ahead to strengthen our brands and create long-term shareholder value.”

A summary of results for the second quarter ended August 1, 2026 as compared to the second quarter ended August 2, 2025:

• Net sales of $1.3 billion, up 5% as compared to last year, with comparable sales flat.
• Operating income of $253 million, including approximately $100 million in refunds of IEEPA tariffs reflected as a reduction of cost of sales as compared to operating income of $207 million and $168 million on a reported and adjusted non-GAAP basis, respectively, last year.
• Operating margin as a percent of sales of 19.9% as compared to 17.1% and 13.9% on a reported and adjusted non-GAAP basis, respectively, last year.
• Net income per diluted share of $4.17 as compared to net income per diluted share last year of $2.91 and $2.32 on a reported and adjusted non-GAAP basis, respectively.

A summary of the impact of IEEPA tariff refunds for the second quarter ended August 1, 2026 is as follows:

⁽¹⁾ Released May 27, 2026.
⁽²⁾ Reflects the impact of International Emergency Economic Powers Act (“IEEPA”) tariff refunds received in the second quarter on operating income, operating margin, and per diluted share. The per diluted share estimated impact is calculated using a 26% tax rate.

Details related to reported net income per diluted share and adjusted net income per diluted share for the second quarter are as follows:

⁽¹⁾  Excluded item consists of a favorable settlement, net of legal fees, of payment card interchange fee litigation.
⁽²⁾  The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26% tax rate.

Net sales by segment and brand for the second quarter are as follows:

⁽¹⁾   Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order.
⁽²⁾   Comparable sales are calculated on a constant currency basis. Refer to “REPORTING AND USE OF GAAP AND NON-GAAP MEASURES,” for further discussion.
⁽³⁾   The Americas segment includes the results of operations in North America and South America.
⁽⁴⁾   The EMEA segment includes the results of operations in Europe, the Middle East and Africa.
⁽⁵⁾   The APAC segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania.

As of August 1, 2026, the company had:

• Cash and equivalents of $628 million compared to $760 million and $573 million as of January 31, 2026 and August 2, 2025, respectively.
• Marketable securities of $10 million compared to $25 million and $31 million as of January 31, 2026 and August 2, 2025, respectively.
• Inventories of $592 million compared to $601 million and $593 million as of January 31, 2026 and August 2, 2025, respectively.
• Borrowing capacity of $500 million under the senior-secured asset-based revolving credit facility (the “ABL Facility”) with net borrowing available of $450 million after minimum excess availability requirement.
• Liquidity comprised of cash and equivalents and borrowing available under the ABL Facility, of approximately $1.1 billion as of August 1, 2026. This compares to liquidity of $1.2 billion and $1.0 billion as of January 31, 2026 and August 2, 2025, respectively.

Details related to the company’s cash flows for the year-to-date period ended August 1, 2026 are as follows:

• Net cash provided by operating activities of $313 million.
• Net cash used for investing activities of $114 million, primarily reflecting capital expenditures.
• Net cash used for financing activities of $330 million, primarily reflecting share repurchases.

During the second quarter of 2026, the company repurchased 2.0 million shares for approximately $177 million. For the year-to-date period ended August 1, 2026, the company repurchased 3.2 million shares for $282 million, representing a 7% reduction in shares outstanding from the beginning of the year. The company has $568 million remaining on the share repurchase authorization established in March 2025.

Depreciation and amortization was $86 million for the year-to-date period ended August 1, 2026.

⁽¹⁾ Released May 27, 2026.
⁽²⁾ Reflects estimated International Emergency Economic Powers Act (“IEEPA”) tariff refunds of $20 million and $120 million in third quarter and full year fiscal 2026, respectively. Estimate excludes the assumed impact of accrued interest paid on tariff refunds. The company also estimates third quarter and full year 2026 impact of tariff refunds on net income per diluted share, inclusive of interest, to be $0.35 and $2.10, respectively.
⁽³⁾ Reflects the estimated impact, net of planned mitigation efforts, of an effective 10% to 12.5% tariff rate on all goods imported into the United States for the remainder of fiscal 2026, updated from a 15% effective rate in the Previous Full Year Outlook. The combined estimated impact of the tariff expense and IEEPA tariff refunds is reflected in the Company’s current fiscal 2026 outlook, including operating margin and net income per diluted share.
⁽⁴⁾ The current outlook for effective tax rate is sensitive to the jurisdictional mix and level of income and does not include the impact of potential future tax policy or legislative changes.
⁽⁵⁾ The current outlook for net income per diluted share and diluted weighted average shares includes the anticipated impact to shares outstanding from potential share repurchase activity in fiscal 2026.
⁽⁶⁾ The timing and amount of any such repurchases will be determined based on an evaluation of market conditions, the company’s share price, legal requirements, and other factors.
⁽⁷⁾ Owned-and-operated stores only.

Today at 8:30 a.m. ET, the company will conduct a conference call and provide additional details around its quarterly results and its outlook for the third quarter. To access the call by phone, participants will need to register at the following URL address to obtain a dial-in number and passcode:

https://register-conf.media-server.com/register/BI214c6f6c229b4c3d9707cbf8458b5cfc 

A presentation of second quarter results will be available in the “Investors” section at corporate.abercrombie.com at approximately 7:30 a.m. ET, today. Important information may be disseminated initially or exclusively via the website; investors should consult the site to access this information.

This Press Release and related statements by management or spokespeople of Abercrombie & Fitch Co. (A&F) contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements, including, without limitation, statements regarding our 2026 third quarter and annual fiscal 2026 results, relate to our current assumptions, projections and expectations about our business and future events. Any such forward-looking statements involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the company’s control. The inclusion of such information should not be regarded as a representation by the company, or any other person, that the objectives of the company will be achieved. Words such as “estimate,” “project,” “plan,” “goal,” “believe,” “expect,” “anticipate,” “intend,” “should,” “are confident,” “will,” “could,” “outlook,” and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we assume no obligation to publicly update or revise any forward-looking statements, including any financial targets, estimates, or performance outlooks whether as a result of new information, future events, or otherwise. Factors that may cause results to differ from those expressed in our forward-looking statements include, but are not limited to, the factors disclosed in Part I, Item 1A. “Risk Factors” of the company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026, and in our subsequent reports and filings with the Securities and Exchange Commission, as well as the following factors: risks and uncertainties related to global trade policy and international trade disputes, including the impact of the imposition, or threat of imposition of new or increased tariffs or modification of existing tariffs by the United States or foreign governments, including uncertainty regarding the timing and implementation of changes to existing tariff programs, as well as uncertainty regarding the availability, timing, and amount of potential tariff refunds or recoveries, or other changes to trade policies or arrangements; risks related to changes in global economic and financial conditions, including inflation, and resulting impacts on consumer confidence and spending, our operating results, and expense management; risks and uncertainty related to the effectiveness and optimization of recently implemented enterprise resource planning (“ERP”) systems, including the ability to realize expected benefits and manage post-implementation activities; risks related to global operations and supply chain, including political or climate-related conditions in the countries where we sell or source our products, and resulting impacts on transportation and freight costs; risks related to the geopolitical landscape and ongoing armed conflicts, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience, including regional conflicts in the Middle East, and the impact of such conflicts or events on international trade, consumer demand, supplier delivery, energy costs or freight costs; risks related to natural disasters and other unforeseen catastrophic events; risks related to our failure to engage our customers, anticipate customer demand, expectations, and changing fashion trends, and manage our inventory and product delivery; risks related to our failure to operate effectively in a highly competitive and constantly evolving industry; risks related to our ability to successfully invest in and execute on our customer, digital and omnichannel initiatives; risks related to our ability to successfully execute technology initiatives and partnerships, such as those relating to artificial intelligence technology; risks related to our ability to execute on, and maintain the success of, our strategic and growth initiatives, including risks related to the review of strategic alternatives for our APAC region or any future strategic reviews or initiatives; risks related to the effects of seasonal fluctuations on our sales and our performance during the back-to-school and holiday selling seasons; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in our tax obligations and effective tax rate, including as a result of earnings and losses generated from our global operations, may result in volatility in our results of operations; risks and uncertainty related to adverse public health developments; risks related to cybersecurity threats and privacy or data security breaches, and the potential loss or disruption of our information technology systems; risks related to the continued validity of our trademarks and our ability to protect our intellectual property; risks associated with corporate responsibility, including those associated with climate change; risks related to reputational harm to the company, its officers, and directors; risks related to actual or threatened litigation; and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing laws and regulations.

This document includes certain adjusted non-GAAP financial measures, which are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and exclude the impact of certain items. Management uses these non-GAAP financial measures to evaluate the company’s performance and manage its operations, and believes such measures to be helpful in understanding the company’s results of operations or financial position. These non-GAAP financial measures are intended to complement, and are not considered as alternatives to, the most directly comparable GAAP financial measures, as reconciled in the below tables. Also, such non-GAAP financial measures may not be comparable to similarly titled measures used by other entities. Additional details about non-GAAP financial measures and a reconciliation of GAAP financial measures to non-GAAP financial measures can be found in the “Reporting and Use of GAAP and Non-GAAP Measures” section. Sub-totals and totals may not foot due to rounding. Net income and net income per share financial measures included herein are attributable to Abercrombie & Fitch Co., excluding net income attributable to noncontrolling interests.

As used in this document, references to “Americas” includes North America and South America, “EMEA” includes Europe, the Middle East and Africa and “APAC” includes the Asia-Pacific region, including Asia and Oceania.

Abercrombie & Fitch Co. (NYSE: ANF) is a global, digitally led, omnichannel specialty retailer of apparel and accessories catering to kids through millennials with assortments curated for their specific lifestyle needs.

The company operates a family of brands, including Abercrombie brands and Hollister, with a shared commitment to offering products of enduring quality and exceptional comfort that support global customers on their journey to being and becoming who they are. Abercrombie & Fitch Co. operates approximately 850 stores under these brands across North America, Europe, Asia and the Middle East, as well as the e-commerce sites abercrombie.com, abercrombiekids.com, and HollisterCo.com.

Reporting and Use of GAAP and Non-GAAP Measures

The company believes that each of the non-GAAP financial measures presented are useful to investors as they provide a measure of the company’s operating performance excluding the effect of certain items which the company believes do not reflect its future operating outlook, therefore supplementing investors’ understanding of comparability of operations across periods. Management used these non-GAAP financial measures during the periods presented to assess the company’s performance and to develop expectations for future operating performance. Non-GAAP financial measures should be used supplementally to, and not as an alternative to, the company’s GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies.

The company provides comparable sales, defined as the percentage year-over-year change in the aggregate of: (1) sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation, and (2) digital net sales with prior year’s net sales converted at the current year’s foreign currency exchange rate to remove the impact of foreign currency rate fluctuation.

The company also provides certain financial information on a constant currency basis to enhance investors’ understanding of underlying business trends and operating performance, by removing the impact of foreign currency exchange rate fluctuations. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 26% tax rate.

In addition, the company provides EBITDA and adjusted EBITDA as supplemental measures used by the company’s executive management to assess the company’s performance. We also believe these supplemental performance measures are meaningful information for investors and other interested parties to use in computing the company’s core financial performance over multiple periods and with other companies by excluding the impact of differences in tax jurisdictions, debt service levels and capital investment.

⁽¹⁾ “GAAP” refers to accounting principles generally accepted in the United States of America.
⁽²⁾ Excluded items consist of favorable settlement, net of legal fees, of claims to resolve payment card interchange fee antitrust litigation.
⁽³⁾ The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.

⁽¹⁾ “GAAP” refers to accounting principles generally accepted in the United States of America.
⁽²⁾ Excluded items consist of favorable settlement, net of legal fees, of claims to resolve payment card interchange fee antitrust litigation.
⁽³⁾ The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.

⁽¹⁾ “GAAP” refers to accounting principles generally accepted in the United States of America.
⁽²⁾ The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate.
⁽³⁾ Excluded item consists of favorable settlement, net of legal fees, of payment card interchange fee litigation.
⁽⁴⁾ The estimated basis point change has been rounded based on the percentage change.

⁽¹⁾   EBITDA and Adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP. EBITDA is defined as net income before interest, income taxes and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for a favorable settlement, net of legal fees, of payment card interchange fee litigation.

⁽¹⁾ Reflects the estimated impact, net of mitigation efforts, of then-effective tariff rates on all goods imported into the United States and sold, for the period. Includes IEEPA, Section 122, and Section 301 tariffs.
⁽²⁾ Reflects the impact of IEEPA tariff refunds, excluding accrued interest.
⁽³⁾ The combined estimated impact of the tariff expense and IEEPA tariff refunds is included in the Company’s fiscal 2026 outlook, including operating margin and net income per diluted share. Refer to outlook section for further detail. Separately, for the second quarter of 2026, we estimate IEEPA tariff refunds of approximately $100 million had a beneficial impact of $1.75 on net income per diluted share.