Abercrombie & Fitch (ANF) Q3 2026 earnings summary

Executive summary

• Achieved record third quarter net sales of $1.3 billion, up 7% year-over-year, marking the 12th consecutive quarter of growth, with EPS of $2.36 exceeding expectations.

• Operating margin for Q3 was 12.0%, at the high end of guidance, despite tariff impacts and higher costs.

• Hollister brands grew 16%, while Abercrombie brands declined 2%; Americas and EMEA segments each grew 7%, offset by a 6% decline in APAC.

• Returned $100 million to shareholders via share repurchases in the quarter, totaling $350 million year-to-date (9% of shares outstanding at start of year).

• Continued investments in marketing, digital technology, and store expansion to support long-term growth.

Financial highlights

• Q3 net sales: $1.3 billion, up 7% year-over-year; comparable sales up 3%.

• Operating income: $155 million (12.0% margin), down from $179 million last year; adjusted EBITDA: $194 million (15.0% margin), down from $219 million last year.

• Net income attributable to shareholders: $113 million, down from $132 million last year; net income margin: 8.8%.

• Gross margin declined to 62.5% from 65.1% year-over-year, mainly due to higher average unit costs and tariffs.

• Cash and equivalents at quarter-end: $606 million; total liquidity: $1.1 billion.

Outlook and guidance

• Full-year net sales growth expected at 6% to 7%, with operating margin of 13.0% to 13.5%.

• Full-year EPS expected at $10.20–$10.50; Q4 net sales expected up 4%–6% to $1.6 billion, with operating margin around 14%.

• Q4 EPS expected at $3.40–$3.70; diluted shares around 47 million, with $100 million in Q4 share repurchases planned.

• Capital expenditures for the year expected at $225 million, focused on new stores, remodels, and digital initiatives.

• About 40 net store openings and 40 remodels/right-sizings planned for the year.