Net sales growth led by Americas up 3%, APAC up 24%, partially offset by 10% decline in EMEA
Brand performance led by Abercrombie brands growth of 3%, with Hollister brands flat
Operating margin of 8.0%, with earnings per diluted share of $1.47 exceeding outlook range
$105 million in shares repurchased in the quarter; 3% of shares outstanding at beginning of the year
Maintains full-year outlook to net sales growth of 3% to 5%, net income per diluted share of $10.20 to $11.00, share repurchases of around $450 million
Second quarter outlook of net sales growth of 2% to 4%, net income per diluted share of $1.80 to $2.00, at least $150 million in share repurchases
NEW ALBANY, Ohio, May 27, 2026 (GLOBE NEWSWIRE) -- Abercrombie & Fitch Co. (NYSE:ANF) today announced results for the first quarter ended May 2, 2026. These compare to results for the first quarter ended May 3, 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 first quarter net sales and our 14th consecutive quarter of growth, reflecting our teams' consistent execution for our customers amid a dynamic global environment. Results were driven by continued growth in the Americas, led by Abercrombie Brands, along with strong growth in APAC. In EMEA, demand softened as the Middle East conflict ramped up, particularly impacting Hollister Brands, and we are proactively managing inventory and marketing to support the region. Our bottom-line results reflect discipline and consistency, with both operating margin and earnings per diluted share exceeding our outlook. We continued to invest in stores and marketing to strengthen our brands and customer experiences, while also returning $105 million to shareholders through share repurchases, supported by our strong balance sheet.
On our first-quarter progress, we are maintaining our full-year sales and operating margin outlook. With our customer at the center of everything we do and a strong foundation in place, we remain on offense across product and marketing and are confident in our path to deliver full-year net sales growth across brands, double-digit operating margins, strong cash flow and earnings per share growth to create long-term value for shareholders."
Details related to reported net income per diluted share and adjusted net income per diluted share for the first quarter are as follows:
2026
2025
GAAP
$
1.47
$
1.59
Impact from changes in foreign currency exchange rates(1)
—
0.11
Adjusted non-GAAP constant currency
$
1.47
$
1.70
(1) The estimated impact from foreign currency is calculated by applying current period exchange rates to prior year results using a 26% tax rate.
A summary of results for the first quarter ended May 2, 2026 as compared to the first quarter ended May 3, 2025:
Net sales of $1.1 billion, up 2% as compared to last year, with comparable sales of (1)%.
Operating income of $89 million as compared to operating income last year of $102 million.
Operating margin as a percent of sales of 8.0% as compared to 9.3% last year.
Net income per diluted share of $1.47 as compared to net income per diluted share last year of $1.59.
Net Sales
Net sales by segment and brand for the first quarter are as follows:
(in thousands)
2026
2025
1 YR % Change
Comparable sales(2)
Net sales by segment:(1)
Americas(3)
$
899,944
$
874,804
3
%
1
%
EMEA(4)
167,373
185,036
(10
)%
(11
)%
APAC(5)
46,504
37,471
24
%
15
%
Total company
$
1,113,821
$
1,097,311
2
%
(1
)%
2026
2025
1 YR % Change
Comparable sales(2)
Net sales by brand family:
Abercrombie
$
564,719
$
547,947
3
%
—
%
Hollister
549,102
549,364
—
%
(2
)%
Total company
$
1,113,821
$
1,097,311
2
%
(1
)%
(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.
Financial Position and Liquidity
As of May 2, 2026 the company had:
Cash and equivalents of $594 million compared to $760 million and $511 million as of January 31, 2026 and May 3, 2025, respectively.
Marketable securities of $25 million compared to $25 million and $97 million as of January 31, 2026 and May 3, 2025, respectively.
Inventories of $533 million compared to $601 million and $542 million as of January 31, 2026 and May 3, 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 $1.0 billion as of May 2, 2026. This compares to liquidity of $1.2 billion and $0.9 billion as of January 31, 2026 and May 3, 2025, respectively.
Cash Flow and Capital Allocation
Details related to the company's cash flows for the year-to-date period ended May 2, 2026 are as follows:
Net cash provided by operating activities of $44 million.
Net cash used for investing activities of $61 million, primarily reflecting capital expenditures.
Net cash used for financing activities of $148 million, primarily reflecting share repurchases.
During the first quarter of 2026, the company repurchased 1.2 million shares for approximately $105 million, representing a 3% reduction in shares outstanding from the beginning of the year. The company has $745 million remaining on the share repurchase authorization established in March 2025.
Depreciation and amortization was $42 million for the year-to-date period ended May 2, 2026.
Fiscal 2026 Outlook
The following outlook replaces all previous full year guidance. For fiscal 2026, the company now expects:
Current Full Year Outlook
Previous Full Year Outlook (1)
Net sales
Growth In The Range of 3% to 5%
Growth In The Range of 3% to 5%
Year-over-year tariff impact (bps) (2)
Unfavorability of around 20 bps
Unfavorability of around 70 bps
Operating margin
In The Range of 12.0% to 12.5%
In The Range of 12.0% to 12.5%
Effective tax rate (3)
Around 30%
Around 29%
Net income per diluted share (4) (5)
In The Range of $10.20 to $11.00
In The Range of $10.20 to $11.00
Share repurchases (5)
Around $450 million
Around $450 million
Diluted weighted average shares (4) (5)
Around 44 million
Around 45 million
Capital expenditures
Around $225 million
In The Range of $200 to $250 million
Real estate activity (6)
~30 Net Store Openings
~30 Net Store Openings
(all approximate)
50 Openings, 20 Closures
55 Openings, 25 Closures
80 Remodels and Right-Sizes
70 Remodels and Right-Sizes
Second Quarter Outlook
Net sales
Growth In The Range of 2% to 4%
Year-over-year tariff impact (bps) (2)
Unfavorability of around 120 bps
Operating margin
Around 10%
Effective tax rate (3)
Around 32%
Net income per diluted share (4) (5)
In The Range of $1.80 to $2.00
Share repurchases (5)
At least $150 million
Diluted weighted average shares (4) (5)
Around 45 million
(1) Released March 4, 2026. (2) Reflects the estimated impact of a 10% tariff rate on all goods imported into the United States for the fiscal second quarter and a 15% tariff rate thereafter for the remainder of fiscal 2026. The estimated impact is reflected in the Company's overall outlook, including operating margin. The estimated impact is net of planned mitigation efforts and does not include any potential refunds or recoveries of tariffs imposed pursuant to the International Emergency Economic Powers Act ("IEEPA"). The Company has applied for IEEPA tariff refunds of around $100 million. For comparison, year-over-year second quarter fiscal 2025 and full year fiscal 2025 unfavorable tariff impacts were 40 basis points and 170 basis points, respectively. (3) 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. (4) 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. (5) 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. (6) Owned-and-operated stores only.
Conference Call
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 second 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/BI29d238aae2774ad3be89eb389ae01fad
A presentation of first 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.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
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 second 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, and on our operating results, financial condition, including inflation, and the resulting impact on consumer spending and out operating results, financial condition, 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; ...
