TLDR
- ANF jumped 11% in premarket trading after Q2 earnings of $4.17 per share crushed the $1.99 Wall Street estimate
- Net sales grew 5% to $1.27 billion, edging past analyst expectations of $1.25 billion
- Comparable sales were flat year-over-year, slightly missing the expected 0.8% increase
- Full-year net income guidance raised to $13.10-$13.60 per share, well above the prior forecast of $10.20-$11.00
- Full-year net sales growth forecast tightened to 5%, up from the previous range of 3%-5%
Abercrombie & Fitch stock rose 11% to $121.36 in premarket trading on Wednesday after the retailer posted a strong fiscal second quarter and lifted its full-year outlook.
The company reported adjusted earnings of $4.17 per share for the quarter ended August 2. That compared to $2.32 a year ago and came in well ahead of the Wall Street consensus of $1.99 per share, according to FactSet.
It is worth noting that quarterly profit included a $1.75 per share benefit from tariff refunds, which helped inflate the bottom-line beat.
ABERCROMBIE & FITCH $ANF Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.3B (Est. $1.25B) 🟢; +5% YoY
🔹 EPS: $4.17; incl. $1.75 tariff refund
🔹 Operating Margin: 19.9%; +280 bps YoY
🔹 Operating Income: $253MFY26 Guide:
🔹 EPS: $13.10-$13.60 (Est. $10.72) 🟢
🔹 Net Sales Growth:… pic.twitter.com/jN5uyigSAM— Wall St Engine (@wallstengine) August 26, 2026
Net sales for the quarter came in at $1.27 billion, a 5% increase year-over-year and just above analyst expectations of $1.25 billion.
Brands and Regions
Management said growth was balanced across brands and regions. The Americas showed increased momentum, and trends in Europe, the Middle East, and Africa were described as improving.
Abercrombie brand sales rose 8% in the quarter. Hollister sales grew 2%, though same-store sales for Hollister fell 3%.
Comparable sales overall were flat from a year ago, a slight acceleration from the 1% decline posted in the fiscal first quarter. Wall Street had been expecting a 0.8% increase.
The Abercrombie brand saw same-store sales rise 4%, driven by continued traction with millennial consumers.
Hollister continued to attract younger shoppers, with back-to-school demand cited as a tailwind heading into the second half of the year.
Guidance
For the fiscal third quarter, the company expects net income between $2.90 and $3.20 per share, with net sales growth of 5% to 6%. The Street was looking for $2.82 per share.
Full-year net income guidance was raised to $13.10 to $13.60 per share. The prior forecast had been $10.20 to $11.00 per share. Analysts had been modeling $10.72 per share.
Full-year net sales growth is now expected at approximately 5%, compared to the previous guidance range of 3% to 5%.
The stock had been under pressure before the report. ANF ended Tuesday down 3%, as retailer stocks broadly sold off.
For the year, ANF was still down 13% as of Tuesday’s close, despite a 9.4% gain so far in August.
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