Abercrombie & Fitch Raises Full-Year Outlook After Strong Q2 Results

Abercrombie & Fitch experienced a 13% increase in its stock price after reporting second quarter fiscal 2026 results that surpassed Wall Street expectations and raising its full-year outlook, according to finance.yahoo.com on August 26, 2026.

The company posted adjusted earnings per diluted share of $4.17, well above analyst estimates near $1.99. This included a $100 million pre-tax refund of IEEPA tariffs, which added about $1.75 per share.

Net sales rose 5% year-over-year to $1.3 billion, exceeding forecasts of around $1.25 billion. This marked the company’s 15th consecutive quarter of sales growth with flat comparable sales.

Sales increased across all regions with the Americas up 5%, Asia-Pacific up 19%, and Europe, Middle East, and Africa up 2%. Abercrombie brand sales grew 8% and Hollister brand sales rose 2%, both reaching record sales for the quarter.

Operating income climbed to $253 million from $207 million a year earlier, while operating margin improved to 19.9% from 17.1% reported previously. The tariff refund reduced cost of sales, contributing to margin expansion.

The company repurchased $177 million of stock during the quarter, bringing year-to-date buybacks to $282 million, representing 7% of shares outstanding at the start of the year.

"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," said Fran Horowitz, CEO of Abercrombie & Fitch.

Horowitz highlighted balanced growth across brands and regions, noting "accelerating momentum in the Americas and improving trends in EMEA." She also announced updates to the company’s full-year sales and operating margin outlook while pursuing growth opportunities through partnerships and new product categories.

For fiscal 2026, Abercrombie now expects net sales growth around 5% compared to a previous forecast of 3% to 5%. Operating margin guidance was raised to 14.5%-15% from 12%-12.5%, and net income per diluted share is expected between $13.10 and $13.60, up from $10.20 to $11.

The outlook includes a 220-basis-point benefit from the tariff refund. The company also increased its share repurchase target to at least $500 million from $450 million previously.

Looking ahead to the third quarter, Abercrombie anticipates net sales growth of 5% to 6%, net income per diluted share of $2.90 to $3.20, and plans to repurchase at least $100 million of shares.