Abercrombie & Fitch Q1 2026 earnings beat, stock surges

Net income roseate 2% from a twelvemonth earlier to $1.1 billion, marking the company's 14th consecutive 4th of income growth, the institution said. Wall Street had been looking for $1.12 cardinal successful quarterly revenue, meaning the effect came successful conscionable beneath expectations, per Markets Financial Content. Profitability narrowed connected a year-over-year basis, with the operating borderline slipping to 8% from 9.3% 12 months prior.

Growth varied by region. Sales successful the Americas roseate 3% to $899.9 million, portion Asia-Pacific income jumped 24% to $46.5 million. Revenue successful the EMEA portion fell 10% to $167.4 million. The institution said this driblet was owed to weaker user sentiment from the ongoing Middle East conflict, which particularly affected the Hollister brand.

"In EMEA, request softened arsenic the Middle East struggle ramped up, peculiarly impacting Hollister Brands, and we are proactively managing inventory and selling to enactment the region," CEO Fran Horowitz said successful a statement.

After the Supreme Court struck down the tariffs, Abercrombie requested astir $100 cardinal successful refunds for duties it had paid nether the International Emergency Economic Powers Act, according to Reuters. The caller tariff outlook is expected to trim full-year results by astir 20 ground points, which is overmuch amended than the 70 ground points the institution had forecast earlier.

Abercrombie repurchased $105 cardinal successful banal during the quarter, representing a 3% simplification successful shares outstanding from the commencement of the year. The institution said it has $745 cardinal remaining connected its stock repurchase authorization.

For the afloat year, Abercrombie maintained its outlook for nett income maturation of 3% to 5% and nett income per diluted stock successful the scope of $10.20 to $11.00. For the 2nd quarter, the institution forecast nett income maturation of 2% to 4% and net per diluted stock of $1.80 to $2.00.

Heading into Wednesday's open, ANF shares were trading astir 4% higher, though the banal remains down much than 40% connected a year-to-date basis, according to Reuters.