revenue growth
5 pct
FY 2026
official guidance
ABERCROMBIE & FITCH CO.
Last · NYSE$149.74-1.14 (-0.76%)close · yahoo · 15h ago
Market cap$6.35B42.4M sh
P/E · TTM12.9fwd 11.6 · eps 11.58
Beta1.01vs S&P 500
Div yield0.00%annual · TTM
52w range
$65.45$155.22
Volume1.4Msession
| Revenue | $5.3B |
|---|---|
| Operating income | $732.4M |
| Net income | $536.0M |
| Free cash flow | $566.5M |
| Operating margin | 13.7% |
| Net margin | 10.0% |
| Return on equity | 39.6% |
| Period | TTM 2026-08-01 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong brand momentum is offset by temporary tariff benefits and an elevated Q4 execution requirement.
HOLD.
Abercrombie delivered strong execution—Q2 sales rose 5% to $1.27 billion, with underlying operating margin improving roughly 200 bps after excluding the 790-bp tariff-refund benefit. However, comparable sales were flat, Q3 guidance still includes a 160-bp refund benefit, freight is offsetting tariff favorability, and the full-year outlook requires roughly 7% Q4 growth; the business is healthy, but the near-term earnings quality is not clean enough to chase without valuation support.
Themes
- Full Price Selling
- Tariff Refunds
- Hollister Back To School
- Brand Turnaround
- Target Partnership
- Nfl Distribution
Near term
Q3 guidance calls for 5%-6% sales growth, 13%-14% operating margin and $2.90-$3.20 EPS, including approximately $20 million of tariff refunds and a $0.35 EPS benefit.
Hollister demand accelerated in August after inventory constraints during Q2; sustained full-price selling and conversion will determine whether the brand can move from negative comps toward positive comps.
At least $100 million of planned Q3 share repurchases should support per-share results, but the ERP implementation is expected to create slight operating-expense deleverage.
Freight remains elevated and is largely offsetting the benefit from lower Section 301 tariff rates, limiting near-term gross-margin upside.
Longer term
The 15-quarter growth streak, improved conversion, lower promotions and balanced category performance support a credible structural brand turnaround.
Target, NFL distribution, footwear, accessories and home goods could expand customer reach and addressable market, but management said these opportunities remain early and relatively small.
The store plan includes 50 openings, 80 remodels/right-sizes and approximately 20 closures in 2026, supporting brand presentation but requiring continued capital discipline.
The key moat test is whether Abercrombie and Hollister can sustain full-price demand and double-digit operating margins as promotional intensity and fashion competition change; management provided no quantified long-term margin or category targets.
Red flags
Q2 comparable sales were flat companywide; Hollister comps declined 3% and EMEA comps declined 4%, despite reported sales growth from stores and third-party channels.
The $120 million full-year IEEPA tariff refund contributes about 220 bps to operating margin and $2.10 to EPS, making reported earnings materially stronger than recurring earnings.
Full-year guidance implies a roughly 7% Q4 sales acceleration from the 5% growth outlook, with limited detail beyond holiday execution and new product/channel initiatives.
Management did not quantify the long-term revenue, margin or customer-acquisition impact of Target, NFL, footwear, accessories or home goods partnerships.
Elevated freight costs are already offsetting tariff-rate favorability, leaving less gross-margin cushion if demand or promotional conditions weaken.
Forward outlook
operating margin
14.5–15 pct
FY 2026
official guidance
eps diluted
13.1–13.6 $per share
FY 2026
official guidance
revenue growth
5–6 pct
Q3 2026
official guidance
operating margin
13–14 pct
Q3 2026
official guidance
eps diluted
2.9–3.2 $per share
Q3 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Oct 2026
Est. EPS
$3.10
Est. revenue
1.4B
Earnings transcripts
Press & signals
- GlobeNewswire
Abercrombie & Fitch Expands Partnership with Dallas Cowboys and Dallas Cowboys Cheerleaders
- GlobeNewswire
Abercrombie & Fitch Co. Reports Second Quarter Fiscal 2026 Results
- GlobeNewswire
Abercrombie & Fitch Co. Announces Election of Mary Fox to its Board of Directors
The rest of this company's wire — with summaries and source links — is part of Pro.
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