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A month has gone by since the last earnings report for Abercrombie & Fitch (ANF - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Abercrombie due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Abercrombie & Fitch Company before we dive into how investors and analysts have reacted as of late.

Abercrombie's Q1 Earnings Beat Estimates, Hollister Sales Flat Y/YAbercrombie posted first-quarter fiscal 2026 results, wherein the top line lagged the Zacks Consensus Estimate while the bottom line surpassed the same. Meanwhile, the company’s sales increased year over year, but earnings fell. Abercrombie’s earnings per share (EPS) of $1.47 in the fiscal first quarter fell 7.5% from the year-ago quarter. However, the bottom line beat the Zacks Consensus Estimate of $1.26 per share.

Net sales rose 2% year over year to $1.11 billion but missed the Zacks Consensus Estimate of $1.12 billion. The quarter marked the 14th straight quarter of sales growth. Results were driven by higher sales in the Americas and a sharp acceleration in APAC, partially offset by weaker demand in EMEA. Comparable sales dipped 1% on a constant-currency basis, reflecting a softer regional mix despite continued growth in key markets.

Americas net sales increased 3% year over year to $899.9 million, supported by 1% comparable-sales growth.  APAC was the standout in growth rate, with net sales up 24% to $46.5 million and comparable sales up 15%. In contrast, EMEA net sales declined 10% to $167.4 million and comparable sales fell 11%, which management tied to softer demand as the Middle East conflict ramped up, particularly impacting the Hollister brands in the region.

Abercrombie Brands’ PerformanceBy brand, Abercrombie net sales rose 3% to $564.7 million, while Hollister net sales were essentially flat at $549.1 million.

The brand split underscores that the company’s growth in the quarter was concentrated in Abercrombie, while Hollister held revenues steady but faced pressure in comparable sales. Comparable sales were flat for Abercrombie and down 2% for Hollister.

ANF’s Margins & ExpensesSelling expenses increased 7.8% to $431.2 million and rose 230 basis points (bps) to 38.7% of net sales, while general and administrative expense increased 4.5% to $182.8 million and moved up 50 bps year over year to 16.4% of sales.

Operating income of $88.8 million declined 18.5% from adjusted operating income of $109 million, and adjusted operating margin contracted 180 bps to 8%.

Abercrombie’s Cash Flow Backed Buybacks and FlexibilityANF ended the quarter with $594.1 million in cash and cash equivalents and maintained total liquidity of approximately $1 billion, including borrowing available under its ABL facility. Inventory was $532.7 million, down 1.7% from the prior-year quarter.

Operating cash flow was $44.3 million compared with a use of $4 million a year ago, while capital spending totaled $61.3 million. The company repurchased 1.2 million shares for about $105 million during the quarter and had $745 million remaining under its March 2025 authorization, reinforcing management’s emphasis on returning capital alongside continued investment in stores and brand-building.

Abercrombie’s Q2 & FY26 OutlookManagement maintained its fiscal 2026 outlook for net sales growth of 3-5% and operating margin of 12-12.5%, with net income per share expected in the range of $10.20-$11.00. The company continues to plan roughly $450 million in share repurchases and capital expenditures of around $225 million versus $200-$250 million expected earlier. It expects an effective tax rate of about 30%.

For fiscal 2026, Abercrombie plans 30 net store openings, together with 80 remodels and rightsizes, and 20 closures.

For the second quarter of fiscal 2026, ANF expects net sales growth of 2-4% and an operating margin of around 10%, with net income per share projected at $1.80-$2.00. The outlook also embeds a year-over-year tariff headwind of about 120 basis points in the quarter, while the fiscal-year tariff impact was reduced to an unfavorability of around 20 basis points. The company noted it has applied for approximately $100 million of tariff refunds under IEEPA. It expects share repurchases of at least $150 million in the fiscal second quarter.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -22.78% due to these changes.

VGM ScoresAt this time, Abercrombie has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Abercrombie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.