Abercrombie & Fitch Co. - Class A
Q2 2027 Earnings
Includes approximately $100 million in IEEPA tariff refunds reflected as a reduction of cost of sales, benefiting EPS by approximately $1.75 per diluted share. No excluded items in the current quarter; GAAP and adjusted non-GAAP EPS are identical.
Market Reaction
Did ANF Beat Earnings? Q2 2027 Results
Abercrombie & Fitch delivered a blowout second quarter for fiscal 2026, posting GAAP diluted EPS of $4.17 against a consensus estimate of $1.97, a beat of 111.93% that extended the company's streak of consensus EPS beats to four consecutive quarters. The headline figure included approximately $100 million in IEEPA tariff refunds reflected as a reduction to cost of sales, a $1.75 per diluted share benefit that compressed cost of sales to 28.9% of net sales from 37.4% a year ago and lifted operating margin to 19.9%. Revenue of $1.27 billion rose 4.8% year over year, edging past the $1.25 billion consensus by 1.50%, with Abercrombie brands growing 8% to $596.81 million and Hollister contributing $669.88 million. Management raised its full-year fiscal 2026 EPS outlook to $13.10 to $13.60, up sharply from a prior range of $10.20 to $11.00, while lifting operating margin guidance to 14.5%-15.0% and increasing share repurchase commitments to at least $500 million for the year, reflecting confidence that tariff pressures are easing.
- Record second quarter net sales across both brands
- Abercrombie brands led growth with 8% net sales increase
- APAC region grew 19% with 13% comparable sales growth
- Approximately $100 million in IEEPA tariff refunds reduced cost of sales
- Accelerating momentum in the Americas and improving trends in EMEA
- Cost of sales as a percentage of net sales decreased from 37.4% to 28.9%
“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. 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.”
Abercrombie & Fitch CEO, on the earnings call
Forward Guidance & Outlook
Full-year fiscal 2026: Net sales growth around 5% (up from 3%-5% previously); operating margin 14.5%-15.0% (up from 12.0%-12.5%); net income per diluted share $13.10 to $13.60 (up from $10.20 to $11.00); effective tax rate around 29%; share repurchases of at least $500 million (up from around $450 million); capital expenditures around $250 million; approximately 30 net store openings (50 openings, 20 closures) and 80 remodels and right-sizes. Updated outlook reflects an effective 10%-12.5% tariff rate on U.S. imports (down from 15%) and estimated $120 million in full-year IEEPA tariff refunds. Third quarter fiscal 2026: Net sales growth of 5%-6%; operating margin 13.0%-14.0%; net income per diluted share $2.90 to $3.20; at least $100 million in share repurchases; IEEPA tariff refund impact of around 160 bps favorability.
ANF YoY Financials
ANF Revenue by Segment
ANF Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.