Abercrombie & Fitch (ANF) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2025 net sales of $1.21 billion, up 7% year-over-year, marking the 11th consecutive quarter of growth and surpassing expectations.

• Hollister brands posted a 19% net sales increase, while Abercrombie brands declined 5% after strong prior-year growth.

• Operating margin reached 17.1% (GAAP), with adjusted margin at 13.9%, both exceeding guidance and benefiting from a $39 million litigation settlement.

• Adjusted net income per diluted share was $2.32, with GAAP EPS at $2.91, both above outlook.

• Returned $50 million to shareholders via Q2 share repurchases, totaling $250 million year-to-date, with $1.05 billion to $1.1 billion remaining on authorization.

Financial highlights

• Q2 net sales: $1.21 billion (+7% YoY); Americas +8%, APAC +12%, EMEA -1%.

• Comparable sales up 3% overall; Americas +5%, EMEA -5% to +1%, APAC +1% to +12%.

• Adjusted EBITDA margin: 17% ($206 million), GAAP EBITDA $244 million.

• Operating income: $207 million (GAAP), $168 million (adjusted, excluding $39 million litigation benefit).

• Ended Q2 with $573 million in cash and $1.0–$1.02 billion in liquidity.

Outlook and guidance

• Full-year 2025 net sales growth expected at 5%–7%, up from prior 3%–6% guidance, with growth across all regions.

• Full-year GAAP operating margin forecasted at 13%–13.5%, including $39 million litigation benefit and $90 million tariff impact.

• Full-year EPS expected at $10.00–$10.50; tax rate around 30%.

• Q3 2025 net sales expected up 5%–7% YoY; operating margin 11%–12%; EPS $2.05–$2.25.

• Capital expenditures for 2025 projected at $225 million; targeting 40 net store openings and 40 remodels.