Abercrombie & Fitch Co. Q1 2026 Earnings Preview
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 27 2025
0mins
Source: SeekingAlpha
Earnings Announcement: Abercrombie & Fitch Co. is set to release its Q1 earnings results on May 28th, with an expected EPS of $1.37 and revenue of $1.06 billion, reflecting a year-over-year decline in EPS but a slight increase in revenue.
Performance Trends: The company has consistently beaten both EPS and revenue estimates over the past two years, although recent months have seen no upward revisions for EPS and revenue estimates, with several downward adjustments noted.
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Analyst Views on ANF
Wall Street analysts forecast ANF stock price to rise
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 82.180
Low
95.00
Averages
123.67
High
160.00
Current: 82.180
Low
95.00
Averages
123.67
High
160.00
About ANF
Abercrombie & Fitch Co. is a global, digitally led omnichannel specialty retailer of apparel and accessories. The Company offers an assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements. The Company’s brands include Abercrombie brands, which includes Abercrombie & Fitch, abercrombie kids, and Your Personal Best (YPB), and Hollister brands, which include Hollister and Gilly Hicks. Its geographic segments include the Americas, EMEA, and APAC. The Company also offers its loyalty programs, which include Abercrombie’s myAbercrombie and Hollister’s Hollister House Rewards. The Company operates approximately 790 stores under these brands across North America, Europe, Asia and the Middle East, as well as the e-commerce sites abercrombie.com, abercrombiekids.com, and hollisterco.com.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Stock Price Decline: Shares of Gap and American Eagle Outfitters fell 15% and 10% respectively in premarket trading due to weak annual forecasts, indicating consumers are cutting discretionary spending amid a challenging macroeconomic environment.
- Sales Forecast Adjustments: Gap lowered its annual sales forecast, while American Eagle maintained its full-year comparable sales and operating profit outlook but warned of a contraction in current-quarter gross margin, raising concerns about near-term demand.
- Consumer Sentiment Weakness: U.S. inflation saw its largest increase in three years, and consumer sentiment hit a record low in May, forcing households to tap into savings and reduce discretionary purchases such as clothing and accessories.
- Brand Performance Issues: Gap is undergoing a turnaround under CEO Richard Dickson, but Old Navy's seasonal women's apparel failed to connect with shoppers, leading to sales pressure; American Eagle's Aerie brand saw strong demand, but its main brand struggled due to changing fashion trends.
See More
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- Strong Earnings Performance: Snowflake reported first-quarter results that exceeded expectations, leading to a more than 37% surge in shares during after-hours trading, indicating a potential best trading day ever and reflecting strong market confidence in its growth prospects.
- Significant Investment Commitment: The company announced a $6 billion investment in Amazon Web Services (AWS) to enhance its cloud computing capabilities and accelerate the development of AI-related products, thereby improving its competitive edge and customer service capabilities.
- Acquisition Strategy: Snowflake also revealed the acquisition of AI startup Natoma, further expanding its technological capabilities and signaling a strategic focus on AI, which is expected to support future product innovation and market expansion.
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See More
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- Profitability Challenges: Although sales increased, tariff-related costs led to a decline in operating margin from 9.3% to 8%, resulting in an 8% drop in earnings per share to $1.47, yet this figure surpassed analysts' expectations of $1.28, indicating the company's ability to maintain profitability amid challenges.
- Optimistic Future Outlook: Management anticipates that tariff-related pressures will ease in the coming quarters, projecting full-year net sales growth of 3% to 5% and earnings per share targets of $10.20 to $11.00, reflecting confidence in future performance.
- Shareholder Return Plan: Abercrombie & Fitch plans to return $450 million to shareholders through a substantial stock buyback program, with CEO Fran Horowitz stating that the company is on track for top-line growth, double-digit operating margins, and strong cash flow, further bolstering shareholder confidence.
See More
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- Profit Forecast Achieved: Abercrombie & Fitch is on track to meet its full-year profit forecast, with net sales rising 2% year-over-year to $1.1 billion in Q1, marking the retailer's 14th consecutive quarter of growth, demonstrating its market resilience.
- Regional Sales Disparity: While sales in the EMEA division fell 10%, the Americas segment saw a 3% increase, and the Asia-Pacific region surged by 24%, indicating differentiated performance across markets and enhancing the company's global business strategy.
- Shareholder Return Plan: The company plans to return $450 million to investors through a stock buyback program, with CEO Fran Horowitz stating that strong cash flow and double-digit operating margins will support this return strategy, further boosting investor confidence.
- Improved Earnings Outlook: Although earnings per share fell 8% to $1.47, it still exceeded analysts' expectations of $1.28, and management anticipates that tariff-related pressures will ease in the coming quarters, with a full-year net sales growth target of 3% to 5%.
See More
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- Strong Sales Performance: Abercrombie & Fitch reported Q1 net sales of $1.1 billion, reflecting a 2% year-over-year increase and marking the 14th consecutive quarter of growth, indicating robust brand performance and sustained customer demand in the market.
- Profitability Improvement: The company achieved an earnings per share (EPS) of $1.47, exceeding expectations, with an operating margin of 8%, surpassing planned figures, which demonstrates significant progress in cost control and efficiency enhancement, boosting investor confidence.
- Regional Performance Discrepancies: Sales in the Americas rose by 3% and APAC surged by 24%, while EMEA experienced a 10% decline due to regional conflicts, highlighting significant performance disparities across markets and the need to address ongoing pressures in EMEA.
- Optimistic Future Outlook: The company anticipates full-year net sales growth between 3% and 5%, with Q2 net sales growth projected at 2% to 4%, alongside plans to open 50 new stores in the coming year, reflecting confidence in market expansion and proactive strategic positioning.
See More
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- Strong Sales Performance: Abercrombie reported record Q1 net sales of $1.1 billion, a 2% increase year-over-year, exceeding the expected range of 1% to 3%, demonstrating robust market performance despite challenges in the Middle East and select EMEA markets.
- Solid Operating Profit: The company reported operating income of $89 million and adjusted EBITDA of $131 million, with a slight decline in operating margin primarily due to increased marketing and ERP implementation costs, indicating effective cost control measures.
- Optimistic Future Outlook: CFO Ball projected full-year earnings per share in the range of $10.20 to $11, with net sales growth expected between 3% and 5%, reflecting confidence in future performance, particularly in developing new channels and partnerships.
- Capital Return Strategy: The company plans to return $450 million to shareholders through share repurchases in 2026, showcasing strong cash flow and a commitment to ongoing shareholder returns, despite pressures from tariffs and freight costs.
See More
