TLDR
- Q4 adjusted EPS came in at $3.68, beating the $3.57 analyst estimate
- Net sales of $1.67 billion matched Wall Street expectations; comparable-store sales rose 1%
- ANF stock fell 2.3% in premarket trading Wednesday despite the earnings beat
- The stock is already down 21% in 2026 as of Tuesday’s close
- Full-year 2026 net sales growth guided at 3%–5%, below the 6% growth seen in 2025
Abercrombie & Fitch beat Q4 earnings estimates but guided for slower 2026 sales growth and flagged a 70 basis point tariff hit, sending the stock lower.
Abercrombie & Fitch, $ANF, Q4-26.
Record sales keep climbing
📊Adj. EPS: $3.68 🟢
💰Revenue: $1.67B 🔴
📈Net Income: $174.77M🔎13th straight quarter of growth with balanced expansion across regions and brands
Hollister momentum continues to offset softer Abercrombie trends pic.twitter.com/LcApFcR7Xi
— EarningsTime (@Earnings_Time) March 4, 2026
Abercrombie & Fitch reported adjusted earnings of $3.68 per share for fiscal Q4, topping analyst expectations of $3.57, according to FactSet.
Net sales came in at $1.67 billion, in line with Wall Street estimates. Comparable-store sales rose 1% year over year.
Despite clearing the bar on earnings, the stock dropped 2.3% in premarket trading on Wednesday. The reaction wasn’t a total surprise — ANF is already down 21% in 2026 as of Tuesday’s close, following a narrowed Q4 outlook back in January.
The real issue for investors is what comes next.
2026 Outlook Misses the Momentum
For fiscal 2026, Abercrombie guided net sales growth of 3% to 5%. That’s a step down from the 6% growth delivered in 2025, and sits around analysts’ expectations of a 4.2% rise.
Full-year adjusted net income per share is expected between $10.20 and $11. The midpoint of that range, roughly $10.60, comes in above the analyst consensus of $10.36, per LSEG data.
So the earnings forecast is fine. It’s the sales deceleration that’s weighing on the stock.
Tariffs Enter the Equation
Abercrombie flagged tariff exposure as part of the 2026 outlook. The company sources heavily from Vietnam, Indonesia, and Cambodia — all countries that were subject to elevated U.S. import duties before the Supreme Court struck down Trump’s broad IEEPA tariffs.
With those emergency tariffs off the table, the U.S. is now collecting a temporary 10% blanket tariff on imports, with the administration signaling a move to 15%.
Abercrombie said it has baked in a 70 basis point tariff impact for the full year.
The company added that its forecast does not include any potential refunds or recoveries tied to the struck-down duties — meaning there could be upside if those come through, but the company isn’t counting on it.
The 70 basis point hit is a relatively contained number, but it’s one more headwind layered on top of slowing top-line growth.
Abercrombie said it is accounting for the current tariff environment as it stands, not speculating on future policy changes.
The stock’s 21% year-to-date decline heading into Wednesday’s report reflects investor concern that the strong growth run of recent years may be losing steam.
Q4 adjusted EPS of $3.68 beat expectations by $0.11, and the full-year EPS midpoint clears the consensus — but those figures weren’t enough to offset the softer sales growth outlook.
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