Abercrombie & Fitch Co. - Class A
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.08%.
Did ANF Beat Earnings? Q3 2026 Results
Abercrombie & Fitch posted a record third quarter, delivering earnings per share of $2.36 against a consensus estimate of $2.16, a beat of 9.40%, while revenue of $1.29 billion edged past the $1.28 billion estimate and grew 6.8% year-over-year, marking the company's 12th consecutive quarter of sales growth. The standout driver was a sharp divergence between its brand families, with Hollister surging 16% to $673.27 million on the back of a strong back-to-school finish, more than offsetting a 2% decline in the Abercrombie brand to $617.35 million. Operating margin compressed to 12.0% from 14.8% a year ago, primarily reflecting approximately 210 basis points of tariff headwinds, a pressure point that has drawn scrutiny over the durability of the company's profit recovery. Management narrowed its full-year outlook, guiding for net sales growth of 6% to 7% and raising the low end of its EPS range to $10.20 to $10.50, while targeting roughly $450 million in share repurchases for the year.
- Hollister brands grew 16% driven by strong back-to-school and fall seasonal transition
- 12th consecutive quarter of net sales growth
- Comparable sales up 3% on a constant currency basis
- Operating expense leverage from 7% sales growth
- Share repurchases reduced diluted weighted average shares from 52,869 to 47,881
“We achieved three years of consecutive quarterly sales growth, delivering record third quarter net sales, with 7% growth to last year. Hollister brands grew 16% on a strong finish to back-to-school and fall seasonal transition. Abercrombie brands made sequential progress in-line with our expectations, and we are tightly managing inventory as we aim for fourth quarter brand net sales to be approximately flat to last year's record. On the bottom line, we delivered a 12.0% operating margin including important investments in marketing, digital and technology, in addition to 210 basis points of adverse tariff impact. We exceeded our expectations on earnings per share, while also returning $100 million to shareholders in the third quarter, our seventh consecutive quarter of share repurchases.”
Abercrombie & Fitch CEO, on the earnings call
Forward Guidance & Outlook
For full-year fiscal 2025, the company narrowed its outlook: net sales growth of 6% to 7% (from 5%-7%), operating margin of 13.0% to 13.5%, effective tax rate around 30%, and net income per diluted share of $10.20 to $10.50 (raised from $10.00-$10.50). Share repurchases expected around $450 million (up from $400 million), with diluted weighted average shares around 48 million. Capital expenditures of approximately $225 million, with approximately 40 net store openings (60 openings, 20 closures) and 40 remodels/right-sizes. Full-year tariff expense estimated at approximately $90 million (170 bps of net sales). For Q4, the company expects net sales growth of 4% to 6%, operating margin around 14%, EPS of $3.40 to $3.70, share repurchases around $100 million, and diluted weighted average shares around 47 million.
ANF YoY Financials
ANF Revenue by Segment
ANF Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.