Abercrombie & Fitch (ANF) Q4 2026 earnings summary

Executive summary

• Achieved record net sales of $5.27B in FY 2025, up 6% year-over-year, with 13 consecutive quarters of net sales growth and double-digit operating margins for the third consecutive year.

• Both Abercrombie and Hollister brands delivered record Q4 net sales; Hollister achieved 15% full-year growth and its eleventh consecutive quarter of growth, while Abercrombie declined 1% for the year but returned to growth in Q4.

• EPS exceeded $10 per share, with $9.86 adjusted and $10.46 GAAP.

• Continued investments in marketing, stores, people, and digital capabilities to strengthen the business.

• Operating model and disciplined capital allocation enabled strong shareholder returns, including $450 million in share repurchases (11% of shares outstanding).

Financial highlights

• Q4 net sales grew 5% year-over-year to $1.67B; comparable sales up 1%.

• Q4 operating margin was 14.1%, with EPS of $3.68, up 3% from last year.

• Full-year operating income was $699M (13.3% margin), adjusted operating income $661M (12.5% margin), and adjusted EBITDA margin was 15.5% on $816M Adjusted EBITDA.

• Operating cash flow was $619M; free cash flow $378M; year-end cash and equivalents $760M; total liquidity $1.2B.

• Inventory at cost up 5% year-over-year to $601M.

Outlook and guidance

• FY 2026 net sales expected to grow 3%-5% year-over-year, with growth across brands and regions.

• Full-year operating margin guidance of 12%-12.5%, reflecting 70 basis points of incremental tariff expense.

• EPS expected in the range of $10.20-$11.00; share repurchases targeted at $450M.

• Q1 2026 net sales growth expected at 1%-3%, with operating margin around 7% due to ERP implementation and tariffs.

• Capital expenditures planned at $200-$225M for 2026, with ~30 net store openings and 125 new store experiences (55 new stores, 70 remodels/right sizes).