A strong stock as of late has been Abercrombie & Fitch (ANF - Free Report) . Shares have been marching higher, with the stock up 9.7% over the past month. The stock hit a new 52-week high of $156.72 in the previous session. Abercrombie has gained 20.8% since the start of the year compared to the 0.8% gain for the Zacks Retail-Wholesale sector and the -9.4% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 26, 2026, Abercrombie reported EPS of $2.42 versus consensus estimate of $1.95.
For the current fiscal year, Abercrombie is expected to post earnings of $11.42 per share on $5.52 in revenues. This represents a 15.82% change in EPS on a 4.83% change in revenues. For the next fiscal year, the company is expected to earn $12.41 per share on $5.79 in revenues. This represents a year-over-year change of 8.62% and 4.82%, respectively.
Valuation MetricsAbercrombie may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Abercrombie has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.6X. On a trailing cash flow basis, the stock currently trades at 10.7X versus its peer group's average of 9.2X. Additionally, the stock has a PEG ratio of 1.33. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Abercrombie currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Abercrombie meets the list of requirements. Thus, it seems as though Abercrombie shares could have a bit more room to run in the near term.
How Does ANF Stack Up to the Competition?Shares of ANF have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Designer Brands Inc. (DBI - Free Report) . DBI has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Designer Brands Inc. beat our consensus estimate by 36.00%, and for the current fiscal year, DBI is expected to post earnings of $0.52 per share on revenue of $2.91 billion.
Shares of Designer Brands Inc. have gained 5.6% over the past month, and currently trade at a forward P/E of 12.35X and a P/CF of 4.75X.
The Retail - Apparel and Shoes industry may rank in the bottom 62% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ANF and DBI, even beyond their own solid fundamental situation.
Abercrombie & Fitch očekává v aktuálním čtvrtletí zisk na akcii (EPS) ve výši 3,01 USD, což představuje meziroční nárůst o 27,5 %, při tržbách ve výši 1,37 mld. USD.
Abercrombie & Fitch (ANF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this teen clothing retailer have returned +7%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Retail - Apparel and Shoes industry, which Abercrombie falls in, has gained 7.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Abercrombie is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of +27.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $11.42 points to a change of +15.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $12.41 indicates a change of +8.6% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Abercrombie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Abercrombie, the consensus sales estimate for the current quarter of $1.37 billion indicates a year-over-year change of +5.9%. For the current and next fiscal years, $5.52 billion and $5.79 billion estimates indicate +4.8% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.27 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $2.42 for the same period compares with $2.32 a year ago.
Compared to the Zacks Consensus Estimate of $1.24 billion, the reported revenues represent a surprise of +1.94%. The EPS surprise was +24.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abercrombie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abercrombie. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Abercrombie & Fitch vykázala čtvrtletní zisk na akcii (EPS) ve výši 4,17 USD, výrazně nad odhadem 1,99 USD, při tržbách 1,27 mld. USD oproti odhadu 1,25 mld. USD.
Abercrombie & Fitch Company (NYSE:ANF – Get Free Report) shares crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $103.91 and traded as high as $150.87. Abercrombie & Fitch shares last traded at $149.5550, with a volume of 1,356,738 shares changing hands.
Analysts Set New Price Targets ANF has been the subject of a number of research reports. Wall Street Zen upgraded Abercrombie & Fitch from a “hold” rating to a “buy” rating in a report on Saturday, September 12th. JPMorgan Chase & Co. increased their target price on shares of Abercrombie & Fitch from $110.00 to $126.00 and gave the stock a “neutral” rating in a report on Tuesday, August 18th. Morgan Stanley boosted their price target on Abercrombie & Fitch from $87.00 to $134.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 27th. UBS Group raised their target price on shares of Abercrombie & Fitch from $153.00 to $185.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Finally, The Goldman Sachs Group set a $160.00 target price on shares of Abercrombie & Fitch in a research report on Thursday, August 27th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $155.38.
View Our Latest Research Report on Abercrombie & Fitch
Abercrombie & Fitch Trading Down 0.9% The firm has a 50-day simple moving average of $132.64 and a two-hundred day simple moving average of $103.91. The company has a market capitalization of $6.35 billion, a price-to-earnings ratio of 12.80, a P/E/G ratio of 1.32 and a beta of 1.02. Abercrombie & Fitch (NYSE:ANF – Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The apparel retailer reported $4.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.99 by $2.18. The business had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.25 billion. Abercrombie & Fitch had a return on equity of 33.52% and a net margin of 10.03%. The company’s revenue for the quarter was up 4.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.91 EPS. Abercrombie & Fitch has set its Q3 2026 guidance at 2.900-3.200 EPS and its FY 2026 guidance at 13.100-13.600 EPS. Equities research analysts anticipate that Abercrombie & Fitch Company will post 11.42 EPS for the current year.
Insider Activity In other news, COO Scott Lipesky sold 10,000 shares of Abercrombie & Fitch stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $115.00, for a total transaction of $1,150,000.00. Following the completion of the transaction, the chief operating officer directly owned 152,534 shares of the company’s stock, valued at $17,541,410. The trade was a 6.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Kenneth Robinson sold 800 shares of the firm’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $149.69, for a total transaction of $119,752.00. Following the sale, the director owned 7,169 shares in the company, valued at approximately $1,073,127.61. This represents a 10.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 72,800 shares of company stock valued at $9,595,392 in the last quarter. Company insiders own 2.33% of the company’s stock.
Hedge Funds Weigh In On Abercrombie & Fitch A number of hedge funds have recently bought and sold shares of ANF. Bbfit Investments PTE Ltd. purchased a new position in Abercrombie & Fitch during the fourth quarter valued at $205,539,000. Arrowstreet Capital Limited Partnership raised its position in shares of Abercrombie & Fitch by 41.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,310,296 shares of the apparel retailer’s stock worth $119,722,000 after purchasing an additional 384,845 shares during the last quarter. Baird Financial Group Inc. acquired a new position in shares of Abercrombie & Fitch during the 2nd quarter worth about $20,035,000. Dimensional Fund Advisors LP raised its position in shares of Abercrombie & Fitch by 15.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,596,177 shares of the apparel retailer’s stock worth $145,823,000 after purchasing an additional 208,709 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S lifted its stake in Abercrombie & Fitch by 570.6% in the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 104,936 shares of the apparel retailer’s stock valued at $9,588,000 after buying an additional 89,287 shares in the last quarter.
Abercrombie & Fitch Company Profile (Get Free Report)
Abercrombie & Fitch Co is a global specialty retailer of apparel, accessories and personal-care products. The company operates a portfolio of lifestyle brands, including Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks, serving customers across a range of age groups and fashion preferences.
Its product offerings include casual clothing, denim, dresses, intimates, sleepwear, activewear, swimwear, footwear, accessories and fragrances. The company sells its merchandise through branded retail stores, e-commerce websites and other digital channels, with operations serving customers in North America, Europe, Asia and other international markets.
Founded in 1892 as a sporting-goods store in New York City, Abercrombie & Fitch evolved into a lifestyle apparel retailer and has expanded its brand portfolio over time.
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Jefferies ponechala doporučení „koupit“ pro Abercrombie & Fitch (NYSE:ANF) poté, co hrubá marže společnosti ve 2. čtvrtletí meziročně vzrostla přibližně o 850 bazických bodů.
Abercrombie & Fitch (NYSE:ANF) has room to grow sales and margins as strong brand momentum, firmer pricing and disciplined discounting support its outlook, according to Jefferies, which maintained its 'buy' rating after meeting the retailer’s chief financial officer.
The bank sees the shares as attractively valued at about 11 times forecast fiscal 2027 earnings, with opportunities to outperform expectations if the company sustains its pricing power and promotional discipline.
Abercrombie’s namesake brand grew sales 8% year over year in the second quarter, up from 3% in the first, with gains in knits, wovens and bottoms, improved conversion and more full-price selling.
Hollister, its second brand, lifted second-quarter sales 2% year over year after flat first-quarter sales, with growth accelerating into August as inventory availability caught up with demand around the introduction of larger back-to-school floor sets.
Average unit retail (AUR), the average retail value per unit sold, increased by a mid-single-digit percentage in the second quarter, with lower discounting supporting better-than-expected performance alongside unit sales growth.
The company’s outlook assumes modest AUR growth in the second half, which Jefferies says leaves room for sales and gross margin to outperform if discount discipline continues.
Gross margin expanded by about 850 basis points year over year in the second quarter, including about 790 basis points from tariff refunds, leaving underlying expansion of about 60 basis points despite roughly 100 basis points of tariff expense pressure.
Management expects $20 million in tariff refunds in the third quarter and marketing expenses to remain slightly above 5% of sales, supporting full-year operating margin guidance of 14.5% to 15.0%.
New categories such as footwear and accessories, a Fanatics partnership extending Abercrombie & Fitch (NYSE:ANF)’s National Football League assortment into stadium stores and additional online channels, and a Hollister collaboration with Target are intended to broaden customer reach.
Share repurchases provide another lever for earnings growth, while an enterprise resource planning system completed in March modernizes the infrastructure supporting further expansion.
ANF ve fiskálním roce 2026 očekává asi 130 čistých nových prodejních zkušeností, včetně 50 nových prodejen a 80 remodelací a rightsizingu. Obchod SoHo překonává očekávání a firma plánuje jeho prvky rozšířit i do dalších prodejen.
Key Takeaways ANF expects about 130 net new store experiences in FY26, including 50 openings and 80 remodels.ANF says FY26 will mark its fifth straight year as a net store opener, with growth weighted to the Americas.ANF's SoHo store is performing above expectations, and elements of the concept may roll out to more stores. Abercrombie & Fitch Co. (ANF - Free Report) continues to strengthen its physical retail footprint as part of its broader growth strategy. For fiscal 2026, the company expects to deliver approximately 130 net new store experiences, including 50 new stores and 80 remodels and rightsizes, against roughly 20 closures. New stores are expected to be relatively balanced across the Abercrombie and Hollister brands and weighted toward the Americas. The initiative reflects ANF’s focus on combining selective new-store openings with modernization of its existing fleet to create more productive and engaging shopping environments.
Management remains confident in the runway for store expansion. ANF noted that 2026 marks its fifth consecutive year as a net store opener, underscoring the consistency of its real estate strategy. Rather than viewing store growth as having a fixed endpoint, management continues to identify opportunities across markets and formats. The recently opened Abercrombie SoHo location has been particularly encouraging, with customer response described as strong and the business performing above expectations. The company plans to incorporate elements of the SoHo concept into additional stores over time.
The store strategy also complements Abercrombie & Fitch’s broader push to expand its reach through digital channels, partnerships and new product categories. Management has emphasized continued investment in owned-and-operated stores and digital businesses while layering in growth from third-party channels. If new locations, remodels and rightsizing initiatives continue to improve the customer experience and support brand momentum, the physical fleet could remain an important contributor to ANF’s longer-term growth. However, execution will be key as the company balances expansion spending with its focus on maintaining healthy profitability and disciplined capital allocation.
ANF’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #1 (Strong Buy) company have jumped 46% in the past six months, outperforming the industry and the broader Retail-Wholesale sector, which fell 6.1% and 0.7%, respectively.
ANF Stock's Six-Month Price Performance
Image Source: Zacks Investment Research
ANF currently trades at a forward 12-month P/E ratio of 11.15X, which is lower than the industry average of 12.24X and notably below the sector average of 20.89X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
ANF P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to ConsiderWe have highlighted three other top-ranked stocks in the retail space, namely, FIGS Inc. (FIGS - Free Report) , Deckers Outdoor Corporation (DECK - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) .
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand, and it currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales indicates growth of 19.7% from the year-ago reported number. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It carries a Zacks Rank #2 at present. DECK delivered a trailing four-quarter average earnings surprise of 15.2%.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 6.8% and 7.9%, respectively, from the year-ago actuals.
Boot Barn operates specialty retail stores in the United States and internationally. At present, it carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
It has been about a month since the last earnings report for Abercrombie & Fitch (ANF - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Abercrombie due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Abercrombie's Q2 Earnings Beat on Tariff RefundsAbercrombie delivered second-quarter fiscal 2026 results that topped expectations. It reported earnings per share (EPS) of $2.42 (Excluding IEEPA Tariffs) and adjusted EPS of $4.17. The Zacks Consensus Estimate is pegged at $1.95. Revenues rose 4.8% year over year to $1.27 billion, beating the consensus estimate of $1.24 billion by 1.9%.
The quarter benefited from record net sales, broad-based regional growth and a strong operating performance. Comparable sales were flat on a constant-currency basis, while both Abercrombie and Hollister brands posted record second-quarter sales.
ANF's Record Sales Drive GrowthAbercrombie reported net sales of $1.27 billion in the second quarter of fiscal 2026, up 5% year over year. The company marked its 15th consecutive quarter of growth, supported by higher sales across regions and brands.
The Americas remained the largest contributor, with sales increasing 5% year over year to $1.02 billion and comparable sales rising 1%. APAC sales climbed 19% to $44.2 million, with comparable sales up 13%, while EMEA sales grew 2% to $202 million despite comparable sales declining 4%.
Abercrombie Brands Lead Portfolio GainsAbercrombie brand generated net sales of $596.8 million, up 8% year over year, with comparable sales increasing 4%. Hollister sales reached $669.9 million, up 2%, although comparable sales declined 3%. We had expected sales to rise 2.1% year over year to $563.7 million for Abercrombie and 4% to $683.1 million for Hollister.
The brand performance highlighted continued strength in the company’s core lifestyle offerings. Management noted that both brands achieved record second-quarter net sales, with Abercrombie brands leading overall growth.
ANF Expands Margins With Refund BenefitANF posted adjusted operating income of $252.7 million, up 50.3% from the year-ago quarter. Adjusted operating margin improved to 19.9% from 13.9%. The company benefited from approximately $100 million of IEEPA tariff refunds, which reduced cost of sales and supported profitability.
Selling expense increased to $444 million, up 18.3% from the year-ago quarter, while general and administrative expense rose to $204.8 million, up 16.8% from the year-ago quarter. Higher investments in stores, marketing and payroll partially offset the benefit from stronger sales and tariff refunds.
ANF Maintains Strong Financial FlexibilityANF ended the quarter with cash and equivalents of $627.7 million and total liquidity of approximately $1.1 billion, including available borrowing capacity under its ABL facility. Inventory stood at $591.7 million compared with $593 million in the prior-year period.
The company continued returning capital to shareholders, repurchasing 2 million shares for approximately $177 million during the quarter. Year to date, ANF repurchased 3.2 million shares for $282 million, reducing shares outstanding by 7% from the beginning of the year.
Abercrombie Raises Fiscal 2026 OutlookAbercrombie raised its fiscal 2026 outlook, now expecting net sales growth of around 5% compared with the prior forecast of 3-5%. The company also increased its operating margin outlook to 14.5-15% from 12-12.5%.
For the fiscal year, ANF expects net income per diluted share of $13.10-$13.60 and share repurchases of at least $500 million. Capital expenditures are projected at around $250 million, while the company continues to plan approximately 30 net store openings, 80 remodels and rightsizes, and 20 closures.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 7.62% due to these changes.
VGM ScoresAt this time, Abercrombie has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Abercrombie has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Abercrombie & Fitch's shares gained 58.9% in three months, sharply outperforming the industry.Record Q2 sales marked 15 straight quarters of growth, supported by Abercrombie and Hollister momentum.Partnerships, new categories and strong cash generation are expanding ANF's growth opportunities. Abercrombie & Fitch Co. (ANF - Free Report) has witnessed a sharp rally, with its shares rallying 58.9% in the past three months, significantly outperforming the Retail – Apparel and Shoes industry’s decline of 17.2%, the Retail-Wholesale sector’s dip of 3.9% and the S&P 500 index’s rise of 0.1%.
Image Source: Zacks Investment Research
Closing at $138.60 yesterday, ANF stock stands about 10.7% below its 52-week high of $155.22. The company’s shares remain comfortably above their 50-day and 200-day simple moving averages of roughly $115.93 and $99.66, respectively, highlighting the strength of the stock’s medium- and long-term price trend.
The rally has been supported by resilient demand across brands and regions, improving full-price selling, disciplined inventory management and strong earnings execution. Abercrombie & Fitch is also expanding its growth avenues through new categories, partnerships and distribution channels while maintaining a healthy balance sheet and substantial shareholder returns.
What’s Fueling Abercrombie & Fitch's Rally?Abercrombie & Fitch continues to benefit from healthy momentum across its brands and regions. The company delivered record second-quarter sales, marking its 15th consecutive quarter of top-line growth. Abercrombie remained the key growth driver, aided by improving comparable sales, while Hollister continued to build momentum despite a tough year-ago comparison. Strength across the Americas, APAC and parts of EMEA highlights the benefits of the company’s geographically diversified business.
Strong merchandise execution is also supporting performance. Demand remains healthy across categories such as knits, wovens, bottoms and swimwear, while improved conversion and reduced promotional activity are supporting full-price selling. The company’s disciplined inventory-management approach allows it to respond quickly to demand trends, helping maintain healthy sell-through and protect margins. Encouragingly, higher unit sales alongside lower discounts indicate that product assortments continue to resonate well with customers.
ANF is also broadening its growth opportunities through new categories, partnerships and distribution channels. Hollister’s Target collaboration is helping the brand reach new customers and expand beyond apparel, while Abercrombie’s NFL partnership is opening additional distribution opportunities. The company is also seeing encouraging initial demand for footwear and accessories. These initiatives should help diversify the business and expand the addressable market without requiring substantial capital investment.
Meanwhile, solid profitability, strong cash generation and a healthy balance sheet provide additional support. Management continues to return excess cash to shareholders through share repurchases while investing in stores, digital capabilities and technology. The company has also raised its fiscal 2026 outlook following better-than-expected first-half execution and a strong start to the third quarter. Continued brand momentum, disciplined operations and expanding growth avenues bode well for ANF’s performance.
How Have Estimates Shaped Up for ANF?The earnings estimates have moved noticeably higher following the company's strong second-quarter performance and improved outlook. The Zacks Consensus Estimate for the current quarter’s earnings is pegged at $11.42 per share, indicating year-over-year growth of 15.8%. The estimate has increased 8% over the past 30 days.
For the next fiscal year, the consensus estimate for earnings of $12.41 per share suggests year-over-year growth of 8.6% and has risen 8.1% in the past 30 days.
Image Source: Zacks Investment Research
Is ANF's Valuation Attractive?Despite the substantial share-price rally, Abercrombie & Fitch's valuation remains relatively attractive. ANF recently traded at a forward 12-month P/E multiple of 11.51X, below the Retail – Apparel and Shoes industry's average of 11.84X. The multiple is also slightly below ANF's 12-month median of 8.63X.
The valuation discount is notable given the company's improving earnings estimates, strong brand momentum, healthy margins and expanding growth opportunities. However, the rapid appreciation in the share price means investors should continue to watch whether operating performance can keep pace with heightened expectations.
Image Source: Zacks Investment Research
How to Play ANF Stock Now?Abercrombie & Fitch’s underlying business trends remain encouraging, supported by healthy demand across both Abercrombie and Hollister, disciplined inventory management and reduced promotional activity. Strong merchandise execution, improving full-price selling and expansion into new categories and distribution channels provide multiple avenues for sustained growth.
The company’s solid cash generation and healthy balance sheet also provide flexibility to invest in its brands, stores and digital capabilities while returning excess cash to shareholders through share repurchases. Management’s improved fiscal 2026 outlook further reflects confidence in the company’s operating momentum and growth prospects.
Moreover, ANF’s reasonable valuation, favorable earnings estimate revisions and expanding opportunities through partnerships, category extensions and international markets strengthen its investment appeal. ANF currently has a Zacks Rank #3 (Hold).
Key PicksSuperior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Superior Group of Companies’ current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago figures. SGC delivered a trailing four-quarter earnings surprise of 90.2%, on average.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. It has a Zacks Rank of 2 at present. BOOT delivered an earnings surprise of 11.4% in the trailing four quarters, on average.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.5%, respectively, from the year-ago reported figures.
Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.
Abercrombie & Fitch (ANF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this teen clothing retailer have returned +32.7%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Retail - Apparel and Shoes industry, which Abercrombie falls in, has lost 10.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Abercrombie is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of +27.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.6%.
The consensus earnings estimate of $11.42 for the current fiscal year indicates a year-over-year change of +15.8%. This estimate has changed +7.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.41 indicates a change of +8.6% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has changed +8.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abercrombie is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Abercrombie, the consensus sales estimate for the current quarter of $1.37 billion indicates a year-over-year change of +5.9%. For the current and next fiscal years, $5.52 billion and $5.79 billion estimates indicate +4.8% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.27 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $2.42 for the same period compares with $2.32 a year ago.
Compared to the Zacks Consensus Estimate of $1.24 billion, the reported revenues represent a surprise of +1.94%. The EPS surprise was +24.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abercrombie is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abercrombie. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Abercrombie & Fitch za poslední rok vzrostla o 57 % díky úspěšnému přechodu na digitální, omnichannel model. Firma také odkoupila akcie za 282 mil. USD od začátku roku 2026.
Picture a shopper walking into a store where, only a few years ago, the shelves were packed with clothes that felt like a relic of a dying era. Today, that same customer finds a refreshed brand identity that has successfully pivoted to capture modern style preferences. This is the reality of Abercrombie & Fitch (ANF +4.88%), a legacy specialty retailer that now operates as a digitally led, omnichannel powerhouse. With a current stock price of $136.49 as of Sept. 16, 2026, the company has delivered a 57% return over the past year, reflecting its successful transition into a more resilient, profitable entity.
Our proprietary Hidden Gems scoring system assigns Abercrombie & Fitch an overall Superscore of 80 out of 100, placing it in the Strong category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39).
An 80 places the company in the Top ~11% of every company we score. This analysis serves as one data-driven input to help you weigh the company's operational recovery against its remaining structural risks before you do your own deeper diligence.
Why ANF Has an 80 SuperscoreDisciplined omnichannel growth: The company leverages a massive footprint of more than 900 locations alongside a high-engagement digital platform, allowing it to pool inventory and allocate merchandise based on real-time data.Effective brand repositioning: A successful pivot to a broad, lifestyle-focused identity has allowed the company to regain relevance with a new generation of shoppers.Robust operational recovery: After navigating a significant operational trough in 2022, management improved inventory turnover from 3.0x to 3.3x by mid-2026, demonstrating its ability to execute a disciplined turnaround in a commoditized sector.Proven capital discipline: Management demonstrates clear alignment with shareholders by balancing growth investments in store modernization with aggressive capital returns, including $282 million in share repurchases year-to-date in 2026.Why Is ANF's Superscore Not Higher?Persistent macro volatility: The business model remains sensitive to external cost pressures, as seen in the $90 million tariff-related impact that previously compressed operating margins and forced the company to scramble for mitigation strategies.Highly commoditized sector: Because it operates in the specialty apparel industry, it faces low barriers to entry and intense competition, which prevents it from building a permanent, impenetrable structural moat.Cyclical pricing dependence: The company is susceptible to macroeconomic headwinds, such as shifts in consumer spending.Limited AI integration: The company operates as a traditional apparel retailer without a proprietary data product or an AI-driven value proposition, leaving it vulnerable to disruption from AI-native shopping platforms.The company maintains a high level of capital efficiency. Because it generates significant profit relative to its base of tangible assets, each percentage point of revenue growth compounds into outsize returns, partially offsetting the risks inherent in its cyclical business model.
Hidden Gems Database Scores at a GlanceScoreScore (out of 100)RankSupporting Data PointProduct (1Y)76Top ~28%Consistent sales growth and successful brand reinvention efforts.Product (5Y)76Top ~19%Achieved a 9.1% revenue CAGR from 2022 to 2026.Financial (1Y)68Top ~31%Operating margins moderated to 13.3% in fiscal 2025.Financial (5Y)78Top ~10%Debt-to-equity ratio improved from 1.76 to 0.83 over five years.Leaders82Top ~13%Management handles Q&A with high transparency regarding regional trends.AI13Bottom ~9%The company lacks a standalone data product or retail media network.Valuation Risk83Top ~3%The stock trades at a trailing P/E of 12.4x, which is attractive relative to the company's growth.Is ANF Right For Your Portfolio?This stock warrants a closer look if...
You seek exposure to consumer discretionary stocks that have successfully modernized their omnichannel sales operations.You value companies with disciplined capital allocation strategies that return significant cash to shareholders through repurchases.You may want to keep researching before buying if...
You are uncomfortable with the cyclical nature of apparel retail and the potential for rapid margin compression due to global trade tariffs.You are seeking a technology-driven business model that uses proprietary data or machine learning to build a competitive advantage.The Superscore provides a data-driven signal that should be weighed carefully against your personal financial goals and risk tolerance before you commit capital to an investment.
My 5-year prediction for ANF stockThe stock's 57% climb over the past year may not leave much room for further upside in the near term. Still, the valuation remains attractive enough to deliver satisfactory returns, assuming the company continues to grow earnings.
The company's margins moderated in recent quarters, although in the most recent August-ending quarter, operating margin came in at nearly 20%. However, this was a one-time benefit from tariff refunds.
Importantly, management mentioned that demand is looking healthy across all the company's store brands. For example, the company is benefiting from Hollister's collaboration with Target, which padded the brand's revenue last quarter.
Overall, Abercrombie & Fitch seems to have a successful system in place for keeping an assortment that appeals to shoppers. This is evident in its 5-Year Financial score of 78, which is solid.
But the 1-Year Financial score of 68 reflects moderating margins that the company will need to keep stable to grow earnings. The recent moderation is related to higher freight costs, which are impacting other retailers. Higher operating expenses relative to revenue will be a near-term headwind.
Long-term, the company is focused on reducing promotional activity and investing in tools and technologies to maintain efficiency. Analysts are expecting earnings to grow at an annualized rate of 10% in the coming years. Assuming the company delivers, the stock should perform in line with the market. A rerating to a higher earnings multiple could deliver even better returns over the next five years.
The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.
Abercrombie & Fitch oznámila rekordní tržby za 2. čtvrtletí ve výši 1,27 miliardy USD a upravený zisk na akcii 4,17 USD, přičemž vedení tvrdí, že výsledky táhl i silnější základní byznys. Společnost zároveň zvýšila celoroční výhled tržeb i ziskovosti.
The market’s first takeaway from Abercrombie & Fitch Co‘s (NYSE:ANF) second-quarter earnings was obvious: a roughly $100 million tariff refund helped fuel a blowout quarter. Management spent much of its earnings call making a different argument—that the business itself outperformed expectations by even more.
That distinction matters because investors are now deciding whether Wednesday’s sharp 40% stock rally reflects a one-time accounting benefit or evidence that the retailer’s turnaround continues to strengthen underneath the headlines.
Abercrombie Says the Underlying Business Outperformed ExpectationsChief Executive Officer Fran Horowitz acknowledged the impact of the tariff refund but emphasized it was not what drove the quarter’s outperformance.
“While we benefited from tariff refunds in the quarter, we beat our outlook by more than the refund on both operating margin and earnings per share,” she said.
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The company reported record second-quarter revenue of $1.27 billion and adjusted earnings per share of $4.17, comfortably ahead of Wall Street expectations. Although the tariff refund provided a meaningful boost, management repeatedly pointed investors back to the operating performance of the core business.
Chief Financial Officer Robert Ball broke down the numbers. Abercrombie’s operating margin exceeded the company’s May outlook by roughly 990 basis points. About 790 basis points came from the tariff refund, but “the remaining approximately 200 basis points came primarily from favorable gross margin and operating leverage on stronger sales.”
His conclusion was unequivocal: “While the refund was meaningful, the underlying business performed above our expectations.”
Abercrombie’s Pricing Power Helped Drive the BeatManagement also pointed to healthy consumer demand rather than aggressive discounting as another reason the business exceeded expectations.
Ball said average unit retail — the average selling price of merchandise — “came in stronger than expected on reduced promotional activity,” adding that “the consumers are responding really well to the assortments.” Importantly, he noted that stronger pricing was accompanied by higher unit sales, describing the quarter as “balanced, which is what we like to see.”
Executives highlighted broad-based momentum across the business. Abercrombie delivered 8% sales growth, Hollister returned to sequential acceleration, APAC sales climbed 19%, and the company recorded its 15th consecutive quarter of top-line growth.
The company also raised its full-year outlook for both sales and profitability, citing a “strong start to August” and improving confidence in the second half.
Why Investors Should Look Beyond the Tariff RefundThe tariff refund undoubtedly inflated reported earnings. Management itself estimated the benefit at roughly $1.75 per diluted share during the quarter.
But the more important message from the earnings call was that executives wanted investors to separate the one-time benefit from the underlying trajectory of the business. They argued that stronger merchandise execution, lower promotional activity, healthier margins and continued demand were enough to produce results above internal expectations even before accounting for the refund.
For investors, the next question is whether that operational momentum persists after the tariff benefit disappears. Future quarters will no longer enjoy the same windfall, making the company’s underlying sales growth, pricing discipline and margin performance the metrics that matter most.
If those trends continue, Wednesday’s rally may prove to have been about more than a one-off refund.
ANF Stock Price Activity: Abercrombie & Fitch shares were up 40.20% at $152.68 on Wednesday, according to Benzinga Pro data.
Abercrombie & Fitch Co. (ANF) Q2 2026 Earnings Call August 26, 2026 8:30 AM EDT
Company Participants
Mohit Gupta - Vice President of Investor Relations
Fran Horowitz-Bonadies - CEO & Director
Robert Ball - CFO & Executive VP
Conference Call Participants
Dana Telsey - Telsey Advisory Group LLC
Corey Tarlowe - Jefferies LLC, Research Division
Matthew Boss - JPMorgan Chase & Co, Research Division
Marni Shapiro - The Retail Tracker
Katherine Delahunt - Morgan Stanley, Research Division
Mauricio Serna Vega - UBS Investment Bank, Research Division
Jonathan Keypour - Goldman Sachs Group, Inc., Research Division
Janine Hoffman Stichter - BTIG, LLC, Research Division
Angus Kelleher-Ferguson - Barclays Bank PLC, Research Division
Janet Kloppenburg - JJK Research Associates, Inc.
Presentation
Operator
Good day, and welcome to the Abercrombie & Fitch Second Quarter Fiscal Year 2026 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mohit Gupta. Please go ahead.
Mohit Gupta
Vice President of Investor Relations
Thank you. Good morning, and welcome to our second quarter 2026 earnings call. Joining me today on the call are Fran Horowitz, Chief Executive Officer; Scott Lipesky, Chief Operating Officer; and Robert Ball, Chief Financial Officer.
Earlier this morning, we issued our second quarter earnings release, which is available on our website at corporate.abercrombie.com under the Investors section. Also available on our website is an investor presentation. Please keep in mind that we will make certain forward-looking statements on the call. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mentioned today.
These factors and uncertainties are discussed in our reports and filings with the Securities and Exchange Commission. In addition, we
Abercrombie & Fitch ve 2. čtvrtletí vykázala 100 milionů USD na clech vrácených zpět, což zvedlo provozní zisk na 253 milionů USD. Akcie vyskočily o 34,8 % a dosáhly 18měsíčního maxima.
ToplineAbercrombie and Fitch shares spiked to an 18-month high Wednesday, reporting a large boost in operating income fueled by $100 million worth of tariff refunds in its second quarter earnings.
Abercrombie & Fitch expect further tariff refunds next quarter.
Photo by Spencer Platt/Getty Images
Key FactsAbercrombie shares were up 34.8% as of 45 minutes before markets closed, reaching their highest point since January 2025.
The apparel company benefited from about $100 million in tariff refunds, which boosted operating income to $253 million, up from $207 million in the same period last year, according to its earnings report.
Earnings per share reached $4.17, a massive expectations beat, topping the $1.99 EPS analysts forecasted, according to FactSet.
The retailer also recorded net sales of $1.3 billion in the second quarter, up 5% compared to last year.
After the Supreme Court ruled against President Donald Trump’s “Liberation Day” tariffs earlier this year, the U.S. Court of International Trade ruled several U.S. companies that paid the tariffs were entitled to refunds.
Abercrombie reported $90 million in tariff expenses last year, dropping its full-year operating margin outlook by 1.7% and representing about 16% of the company's entire net income in 2025.
What To Watch ForAbercrombie expects to receive $20 million in tariff refunds for its third quarter.
Big NumberAt least 2.5%. That is how much Abercrombie raised its operating margin outlook for the full year by, forecasting a range between 14.5% and 15%.
Key BackgroundAbercrombie is one of several U.S. companies that has reported tariff refunds this month. U.S. retailers reported over $5 billion in refunds last week alone, with Walmart accounting for a whopping $2.9 billion of those refunds. Other companies reporting tariff refunds included Target ($994 million), Home Depot ($730 million) and TJ Maxx owner TJX ($331 million). Many retailers have suggested they plan to reinvest their tariff refunds into their companies as opposed to passing them on to consumers who paid higher retail prices. Walmart has said it intends to deploy as much of its refund back into lowering prices for consumers, while Costco has said it plans to do the same, though it is not yet clear how much money in tariff refunds the big-box store has received.
Further ReadingAmericans’ Top Retailers Are Getting Billions In Tariff Refunds—Including Walmart, Target—But Many Consumers Still Aren’t (Forbes)
Gap vyskočil o 15 % poté, co zvýšil celoroční EPS výhled na 2,35 až 2,45 USD, i když tržby za 2. čtvrtletí klesly o 2 % na 3,65 miliardy USD a zaostaly za odhadem.
Gap's quarterly revenue missed expectations and Old Navy posted its worst comparable sales in recent memory, yet the stock surged double digits anyway. Here is what investors saw in the numbers that the headline figures buried.
A raised profit outlook is outweighing a trimmed sales forecast at Gap Inc. (NYSE:GAP | GAP Price Prediction) this morning, as margin discipline trumps top-line concerns. Gap stock is up 15% to $23.91 after second-quarter fiscal 2026 results landed Thursday evening. The move claws back much of a 17% year-to-date (YTD) decline and validates a report where the Gap brand’s 10% comparable sales and a raised full-year EPS range outweighed a Q2 2026 revenue miss and softer Old Navy performance.
Also, Abercrombie & Fitch (NYSE:ANF) stock is up 1% to $147.50, extending a rally that has lifted shares 16% YTD on brand momentum and tariff refunds. Kohl’s (NYSE:KSS) stock is up 0.2% to $18.19, holding modest gains after its own refund-boosted results earlier this week.
The SPDR S&P Retail ETF (NYSEARCA:XRT) is up 1% to $87.59, a modest lift that undersells the divergence inside the sector. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.1% to $771.74, so mall-based apparel names are outrunning the broad market on the tariff-refund tailwind.
Profit Beat and Brand Divergence Drove the Move The Gap’s quarterly revenue came in at $3.65 billion, down 2% year over year (YoY), missing the $3.69 billion analyst consensus. Adjusted diluted EPS of $0.52 topped the $0.48 expected beat expectations, while GAAP results were inflated by the tariff refund recognized in cost of goods sold.
The brand-level split explains the price action. At the namesake banner, The Gap’s net sales rose 9% and comparable sales climbed 10%, marking the brand’s 11th consecutive quarter of positive comps. Banana Republic comparable sales rose 3% for a fifth consecutive positive quarter, while Old Navy net sales fell 4% on comparable sales down 4% and Athleta comparable sales dropped 12%.
The Gap’s management trimmed the company’s full-year net sales growth range to 1% to 1.5% from a prior 1% to 2%, reflecting Old Navy full-year comparable sales now being expected flat to down 1% versus a prior flat to up 1%. The company raised adjusted diluted EPS guidance to $2.35 to $2.45 from $2.30 to $2.40, with Q3 2026 net sales expected to rise 1.5% to 2.5%.
Leadership Reset Gives Old Navy a Name and a Date Richard Dickson, The Gap’s CEO, stated that “continued operational and financial rigor contributed to gross margin strength resulting in the Company exceeding profit expectations,” even as revenue came in modestly below plan. Dickson attributed the Old Navy shortfall partly to a concurrent slowdown in store traffic tied to marketing shortcomings, alongside anticipated weakness in the women’s seasonal assortment. That framing lets investors treat the sales cut as an identified problem with targeted actions underway.
Michael Francis becomes Old Navy’s president and CEO on November 2, succeeding Haio Barbeito. The concrete date gives investors a milestone for the turnaround plan, and it comes as Gap has trimmed its annual sales target because of Old Navy for the second consecutive quarter. Attaching a name and start date to the fix reframes the sales cut as a bridge rather than a running wound.
Peers reporting alongside the retailer benefited from IEEPA tariff refunds that flowed through cost of goods sold, lifting margins broadly this week. Abercrombie & Fitch layered underlying brand momentum on top of its own refund, while Kohl’s used its refund to fund value investments for the back half. The $417 million net recovery is the single biggest tariff recovery of the retail season so far.
The company ended the quarter with $2.5 billion in cash, cash equivalents, and short-term investments, and $399 million remaining under its buyback authorization after completing a $200 million accelerated share repurchase and $200 million in open-market purchases during the quarter. The board declared a Q3 dividend of $0.175 per share, up 6% YoY, and year-to-date buybacks now stand at $601 million.
What to Watch Investors can watch for Old Navy comp trends heading into Q3, where guidance calls for flat to down 1% and back-to-school marketing can be tested. The Michael Francis start date on November 2 sets a checkpoint for Old Navy’s turnaround thesis, and the Q3 gross margin outlook calls for 25 to 75 basis points of expansion that can keep the profit story intact.
Momentum across ANF and the broader XRT complex suggests the tariff-refund tailwind can keep flattering retail earnings prints through the current reporting cycle. Sizing your retail exposure should account for the fact that these refunds are non-recurring, so second-half comparisons could look tougher without them.
Contact [email protected] for any questions or corrections.
Abercrombie & Fitch Co. (NYSE:ANF) will release its second earnings report before the opening bell on Wednesday, Aug. 26.
Analysts expect the New Albany, Ohio-based company to report quarterly earnings of $1.97 per share, down from $2.91 per share in the year-ago period. The consensus estimate for ANF’s quarterly revenue is $1.25 billion. It reported $1.21 billion last year, according to Benzinga Pro.
On Aug. 20, Abercrombie & Fitch announced the election of Mary Fox to its board of directors.
Abercrombie & Fitch shares gained 3.1% to close at $112.36 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating and boosted the price target from $115 to $118 on Aug. 19, 2026. This analyst has an accuracy rate of 65%. JP Morgan analyst Matthew Boss maintained a Neutral rating and raised the price target from $110 to $126 on Aug. 18, 2026. This analyst has an accuracy rate of 68%. Raymond James analyst Rick Patel downgraded the stock from Outperform to Market Perform on Aug. 18, 2026. This analyst has an accuracy rate of 77%. Jefferies analyst Corey Tarlowe maintained a Buy rating and increased the price target from $110 to $135 on Aug. 12, 2026. This analyst has an accuracy rate of 60%. UBS analyst Mauricio Serna maintained a Buy rating and increased the price target from $136 to $153 on Aug. 12, 2026. This analyst has an accuracy rate of 51%. Trending
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Considering buying ANF stock? Here’s what analysts think:
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Abercrombie & Fitch čeká ve 2. čtvrtletí výnosy o 2–4 % nad loňskou úrovní, ale na marže budou tlačit tarify, vyšší přepravní náklady a investice do marketingu, obchodů a digitálu.
Key Takeaways Abercrombie expects Q2 sales growth of 2-4%, supported by Americas, APAC and healthy demand.Tariffs, higher freight costs and investments in marketing, stores and digital are set to pressure margins.ANF shares have rallied 37.8% in three months, while the apparel and shoes industry declined 5.5%. Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report second-quarter fiscal 2026 results on Aug. 26, before the opening bell.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.24 billion, indicating 2.8% growth from the year-ago quarter’s actual. For quarterly earnings, the consensus mark is pegged at $1.90 per share, implying a decline of 18.1% from the year-ago quarter’s reported number. The consensus estimate for earnings has been unchanged in the past 30 days.
In the last reported quarter, the company’s earnings beat the consensus estimate by 16.7%. ANF has delivered an earnings surprise of 8.1%, on average, in the trailing four quarters.
Factors Likely to Impact ResultsAbercrombie has been benefiting from continued strength in the Americas and APAC regions, which is expected to have supported revenue growth in second-quarter fiscal 2026. Sales in the Americas are expected to have been driven by growth across both brands, positive traffic trends, and healthy engagement in stores and digital channels. APAC’s results are likely to reflect strong customer demand and the region's expanding opportunity.
Our model estimates sales to increase 3.1% in the Americas, 4.1% in EMEA and 0.5% in APAC for second-quarter fiscal 2026.
The company's balanced regional performance, supported by digital strength, strategic store investments and disciplined execution, continues to underpin its growth trajectory and confidence in achieving another quarter of sales growth.
On the last reported quarter’s earnings call, management reaffirmed its fiscal 2026 sales and operating margin outlook, reflecting confidence in brand momentum, disciplined inventory management and healthy customer demand. The successful completion of its merchandising enterprise resource planning rollout, ongoing investments in AI and digital capabilities, and an active store-expansion strategy are expected to have supported growth in the to-be-reported quarter.
For the second quarter of fiscal 2026, Abercrombie expects year-over-year net sales growth of 2-4% from the prior-year level of $1.2 billion, supported by ongoing strength in the Americas and APAC, modest average unit retail (AUR) growth and healthy customer demand. The company expects an operating margin of 10% in the fiscal second quarter, including $20 million in tariff-related impacts.
However, Abercrombie’s fiscal second-quarter performance is expected to have been weighed down by continued weakness in the EMEA region, wherein disruptions related to the Middle East conflict and softer demand trends across select European markets are hurting sales. On the last reported quarter’s earnings, management expected some of these regional headwinds to persist through the remainder of fiscal 2026, making EMEA a key area to watch.
Abercrombie’s profitability is expected to have been under pressure in the second quarter of fiscal 2026 despite delivering sales growth. Increased marketing investments and costs associated with the company's ERP implementation are expected to have weighed on the company’s margins.
Management has been facing tariff-related expenses, rising freight costs, and ongoing investments in marketing, stores and digital capabilities. Although these investments are intended to support long-term growth and brand strength, they are likely to limit near-term margin expansion.
Management assumes a 10% effective tariff rate in the fiscal second quarter and a 15% tariff rate on U.S. imports in the second half of fiscal 2026. However, the benefit from lower tariff assumptions is expected to have been largely offset by higher freight costs and continued investments in marketing and stores. The company also noted that it has not included any potential tariff refunds in its outlook, leaving trade policy and sourcing costs as ongoing risks to profitability and earnings growth.
Our model expects sales to rise 3.2% and the adjusted operating margin to decline 380 bps year over year to 10.1%. We anticipate adjusted earnings per share of $1.94 for second-quarter fiscal 2026, suggesting a 16.5% fall.
What the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for Abercrombie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Abercrombie currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
ANF’s Stock Performance & Valuation PictureFrom a valuation perspective, Abercrombie is trading at a discount relative to industry benchmarks. The company has a forward 12-month price-to-earnings of 9.57X, lower than the Retail - Apparel and Shoes industry’s average of 13.15X.
Image Source: Zacks Investment Research
The recent market movements show that ANF shares have rallied 37.8% in the past three months against the industry's 5.5% decline.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings EstimatesHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat:
Victoria's Secret (VSXY - Free Report) currently has an Earnings ESP of +5.20% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.
Five Below Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for FIVE’s quarterly revenues is pegged at $1.2 billion, which indicates a 17.9% rise from the figure reported in the prior-year quarter.
The consensus mark for Five Below’s quarterly earnings has moved up 3.2% in the past 30 days to $1.28 per share. The consensus estimate indicates an increase of 58% from the year-ago quarter’s actual. FIVE has an average trailing four-quarter earnings surprise of 70.1%.
Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.20% and a Zacks Rank of 3. ULTA is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.97 billion, which indicates 6.6% growth from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up 0.2% in the past 30 days to $6.17 per share, which implies 6.8% growth from the year-ago quarter's actual. ULTA has an average trailing four-quarter earnings surprise of 10%.
APAC se v 1. čtvrtletí stal nejrychleji rostoucím regionem Abercrombie & Fitch: čisté tržby vzrostly o 24 % a srovnatelné tržby o 15 %. Firma zvažuje partnerství a kapitálově lehké možnosti expanze.
Key Takeaways APAC became Abercrombie & Fitch's fastest-growing region in Q1, with net sales up 24% and comps up 15%.Growth across Abercrombie and Hollister helped offset EMEA weakness tied to geopolitical tensions.Abercrombie & Fitch is reviewing partnerships and capital-light options to scale APAC with strong returns. Abercrombie & Fitch Co. (ANF - Free Report) views the Asia-Pacific (APAC) region as an increasingly important part of its long-term international growth strategy. While the company continues to generate the majority of its revenues from the Americas, APAC is demonstrating strong momentum and reinforcing management's confidence in the region's long-term potential. Rather than pursuing rapid expansion, Abercrombie & Fitch is taking a disciplined approach by evaluating the optimal go-to-market model, including partnerships and other capital-light opportunities that can support profitable, scalable growth. This measured strategy could allow the company to strengthen its presence while preserving financial flexibility.
The first quarter of fiscal 2026 highlighted APAC's growing importance. Regional net sales increased 24% year over year, following 5% growth in the prior-year quarter, while comparable sales advanced 15%, making APAC the company's fastest-growing geography. Growth was broad-based across both the Abercrombie and Hollister brands, helping offset weakness in EMEA, where geopolitical tensions weighed on demand. Encouraged by this performance, ANF said its ongoing strategic review aims to determine how best to scale the region while generating strong returns, with partnerships and capital-light expansion among the options under evaluation.
Looking ahead, APAC could become an increasingly meaningful contributor to Abercrombie & Fitch's global growth story if the company successfully expands its regional footprint while maintaining its disciplined operating model. Management emphasized that the strong fiscal first-quarter performance reinforces its belief in the sizeable long-term opportunity across the region, even as the strategic review continues. With healthy brand momentum, a modernized technology platform and a focus on scalable, high-return growth, APAC has the potential to complement the company's established Americas business and emerge as a more significant earnings driver over time.
ANF’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 14% in the past three months, underperforming the industry’s decline of 2.8% and the broader Retail-Wholesale sector’s rise of 2.5%.
ANF Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is ANF a Value Play Stock?ANF currently trades at a forward 12-month P/E ratio of 8.05X, which is lower than the industry average of 14.51X and notably below the sector average of 22.74X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
ANF P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderUrban Outfitters, Inc. (URBN - Free Report) offers lifestyle products and services in the United States and internationally. At present, URBN sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.7% and 11.8%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average.
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL has a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.
Abercrombie & Fitch v 1. čtvrtletí překonala odhad na EPS 1,47 USD, ale tržby 1,11 miliardy USD za odhady zaostaly. Firma potvrdila celoroční výhled růstu tržeb o 3–5 %.
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.
