Abercrombie & Fitch (ANF) Q1 2026 earnings summary

Executive summary

• Record Q1 net sales of $1.1B, up 8% year-over-year, surpassing guidance and driven by broad-based regional and digital growth.

• Operating margin reached 9.3% and EPS was $1.59, both above expectations, though both declined year-over-year due to higher costs.

• Hollister brands grew 22% while Abercrombie brands declined 4% after strong prior-year growth.

• $200M in share repurchases completed in Q1, reducing share count by 5%, with $1.1B remaining authorized.

• Liquidity stood at $940M, with no outstanding borrowings and strong cash position.

Financial highlights

• Net sales: $1.1B (+8% YoY); comparable sales up 4% overall, with Americas +7%, EMEA +12%, APAC +5%.

• Operating income: $102M, down from $130M last year; operating margin 9.3% vs. 12.7% prior year.

• Gross margin declined 440 basis points to 62% due to higher freight and inventory costs.

• Cash and equivalents: $511M, with total liquidity of $940M.

• Inventory at $542M, up 21% year-over-year to support growth.

Outlook and guidance

• FY25 net sales growth expected at 3–6%, with operating margin of 12.5–13.5%.

• FY25 EPS guidance: $9.50–$10.50 per diluted share; tax rate forecasted at 27%.

• Q2 2025 net sales expected to rise 3–5% YoY, with operating margin of 12–13%.

• $50M tariff impact expected for FY25, reducing operating margin by 100 basis points.

• $400M in share repurchases planned for FY25; 40 net store openings and 40 remodels/right-sizings.