Abercrombie & Fitch Q2 sales top estimates on regional growth, increases buyback

Abercrombie & Fitch

26/08/2026 12:42

Overview
U.S. apparel retailer's Q2 sales rose 5% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations, aided by $100 mln IEEPA tariff refund
Company repurchased $177 mln in shares in Q2, full-year buyback outlook raised to at least $500 mln

Outlook
Abercrombie & Fitch sees full-year net sales growth of around 5%
Company expects 2026 net income per diluted share of $13.10 to $13.60
Abercrombie & Fitch expects third-quarter net sales growth of 5% to 6%

Result Drivers
TARIFF REFUND - $100 mln IEEPA tariff refund boosted operating margin and EPS above outlook
REGIONAL SALES GROWTH - Net sales grew across regions, led by Americas up 5% and APAC up 19%
ABERCROMBIE BRANDS MOMENTUM - Abercrombie brands led with 8% sales growth, achieving best-ever Q2 sales

Company press release: ID:nGNX6DrlCj

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$1.27 bln
$1.25 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$4.17
$1.99 (11 Analysts)
Q2 Net Income
 
$185.54 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for Abercrombie & Fitch Co. is $119.00, about 9.3% above its August 25 closing price of $108.90
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 25 - Citi Trends Q2 sales rise, lifts 2026 outlook
Aug 26 - Department store chain Kohl's misses quarterly sales estimates amid cautious spending
Aug 26 - Bath & Body Works Q2 profit beats on online shopping, lifts EPS guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)