In the latest close session, Abercrombie & Fitch (ANF - Free Report) was down 5.36% at $90.89. The stock fell short of the S&P 500, which registered a loss of 1.21% for the day. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.15%.
The teen clothing retailer's stock has climbed by 8.12% in the past month, exceeding the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 0.42%.
Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. The company is expected to report EPS of $1.9, down 18.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.24 billion, up 2.76% from the year-ago period.
ANF's full-year Zacks Consensus Estimates are calling for earnings of $10.46 per share and revenue of $5.43 billion. These results would represent year-over-year changes of +6.09% and +3.18%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abercrombie & Fitch. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.43% decrease. Abercrombie & Fitch is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Abercrombie & Fitch is presently trading at a Forward P/E ratio of 9.18. Its industry sports an average Forward P/E of 16.08, so one might conclude that Abercrombie & Fitch is trading at a discount comparatively.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ANF in the coming trading sessions, be sure to utilize Zacks.com.
The exclusive capsule and immersive fan experience mark the next chapter of Hollister's partnership with one of the summer's biggest music festivals July 22, 2026 08:00 ET | Source: Abercrombie & Fitch Management Co.
NEW ALBANY, Ohio, July 22, 2026 (GLOBE NEWSWIRE) -- Hollister and Lollapalooza are expanding their partnership this summer with the debut of an exclusive festival collection and the Feel Good House, a new onsite destination where fans can discover limited-edition merchandise, music and immersive experiences throughout the weekend.
Designed exclusively for Lollapalooza, the seven-piece capsule reimagines iconic Y2K festival style through a modern lens. Vintage-inspired graphics, washed denim blues, metallic finishes and pops of pink come together across men's and women's apparel, including a mesh football jersey created exclusively for the collaboration.
As early-2000s fashion continues its resurgence, music festivals have become one of the defining places where style trends are reimagined.
“Music and festival culture have been an important part of the Hollister brand, and working alongside Lollapalooza, we wanted to create moments that feel immersive, memorable and unmistakably Hollister, from the product to the programming to the way customers and fans engage with the brand in real time,” said Kelly Hall, Hollister Head of Merchandising and Design. “Lollapalooza continues to be the right partner for Hollister because it brings our customers together in a key market at one of the most culturally relevant music festivals of the summer.”
That experience comes to life through the Feel Good House. Throughout the weekend, fans can visit the Feel Good House for DJ sets, surprise drops and interactive photo moments inspired by the energy of Lollapalooza. Hollister will also partner with artists and creators to bring the festival experience to fans through social content all weekend long.
The activation builds on Hollister's Aftershows partnership at Lollapalooza in 2025, expanding the brand's presence from late-night programming into the heart of the festival experience.
"For a lot of fans, getting dressed for a festival is part of the fun. Nearly three in four say it makes the experience even more memorable," said Maureen Ford, President of National and Festival Sales for Live Nation. "That sense of self-expression is what festival fashion has always been about. As early-2000s style finds a new generation of fans, this collaboration celebrates the individuality and optimism that have always been at the heart of both Hollister and Lollapalooza."
Several pieces in the collection—including three T-shirts and a festival hat—will be available exclusively onsite at Lollapalooza. The remaining collection will be available at HollisterCo.com and select retail locations beginning festival weekend, with prices ranging from $24.95 to $69.95.
Fans can follow Hollister on Instagram and TikTok for exclusive content, creator and artists collaborations and behind-the-scenes moments from Grant Park.
About Hollister
Hollister creates quality apparel, accessories and fragrance made for capturing moments, creating memories and being unapologetically you. Hollister Co. is a division of Abercrombie & Fitch Co. (NYSE: ANF) and is sold through more than 500 stores worldwide and at HollisterCo.com
Abercrombie & Fitch faces growth headwinds in the EMEA region and Hollister brand, with the prolonged US-Iran hostilities potentially triggering a delayed recovery cadence. The same has been observed in the mixed FQ2'26/FY2026 guidance, albeit potentially mitigated by robust APAC/Americas regions' demand recovery. The stock price consolidation has triggered ANF's value thesis at P/E at 9.17x, with future macro/demand recovery potentially triggering rich capital appreciation.
American Eagle Outfitters: Navigating Brand ShiftsAmerican Eagle Outfitters (AEO 2.63%) operates as a fashion and lifestyle retail enterprise offering clothing, accessories, and personal care items primarily under its American Eagle and Aerie labels.
While it recently initiated a phased shutdown of its third-party logistics business, it reported an approximately 2% net income margin for the quarter ended May 2, 2026.
Abercrombie & Fitch: Expanding Physical FootprintsAbercrombie & Fitch (ANF 2.19%) operates as an omnichannel retailer selling apparel and accessories for men, women, and kids across several brands, including Hollister.
It opened a new flagship store in New York in June 2026, and it recorded an approximately 6% net income margin for the quarter ended May 2, 2026.
Why Revenue Matters for Retail InvestorsRevenue here refers to the data provider's standardized income-statement revenue line item, and tracking this top-line figure helps investors evaluate the overall size and sales trajectory of a business.
Foolish TakeInvesting in consumer goods companies like American Eagle and Abercrombie means making a bet on those companies’ products as well as its management team. Revenue trends can indicate things like a company’s pricing power, product demand, and brand loyalty. It’s up to management to effectively manage other components of the business, like logistics, marketing, and operating costs.
The revenue chart above tells a few stories: one about American Eagle and Abercrombie, and another about the clothing niche within the broader consumer discretionary category. For both companies, the first quarter of the year is the big moneymaker — that quarter includes the holiday shopping period, so it’s an essential time for businesses to record strong revenue numbers. Similarly, Q2 is historically the weakest quarter, as shoppers adjust their spending and retailers pull back on their marketing campaigns. Despite the apparent pullback, this is typically what investors want to see. A weak first quarter in the retail world could indicate waning consumer interest or a loss of pricing power due to too many promotions.
Both companies appear to be delivering steady, reliable revenue performance, but neither is in high-growth mode. That’s something to watch for. It’s also important to pay attention to other parts of the balance sheet. For example, while Abercrombie’s revenue numbers consistently lag American Eagle’s, its 6% net income margin means Abercrombie is generating more profit from every dollar of revenue, suggesting it’s a slightly more efficient business. If Abercrombie can narrow the revenue gap with American Eagle while maintaining a larger net profit margin, it may be the stronger bet here.
Abercrombie & Fitch (ANF - Free Report) ended the recent trading session at $95.24, demonstrating a -2.19% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.01% for the day. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 1.4%.
The teen clothing retailer's stock has climbed by 11.61% in the past month, exceeding the Retail-Wholesale sector's gain of 0.78% and the S&P 500's gain of 0.32%.
The investment community will be paying close attention to the earnings performance of Abercrombie & Fitch in its upcoming release. The company is expected to report EPS of $1.9, down 18.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.24 billion, up 2.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.46 per share and revenue of $5.43 billion, which would represent changes of +6.09% and +3.18%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.43% lower. Abercrombie & Fitch presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Abercrombie & Fitch currently has a Forward P/E ratio of 9.31. This signifies a discount in comparison to the average Forward P/E of 16.59 for its industry.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
NEW ALBANY, Ohio, July 16, 2026 (GLOBE NEWSWIRE) -- Hollister Co. (“Hollister”), a division of Abercrombie & Fitch Co. (NYSE: ANF), announces the launch of its women’s fall denim campaign with rising popstar Freya Skye. The latest collection celebrates self-expression, confidence and the versatility of denim made for modern moments.
At the center of the campaign is Freya Skye, who embodies what it means to be “Made for this Moment.” As she tours, writes and lives in denim, Freya brings an authentic perspective shaped by her life in music and as a longtime fan of Hollister. Through a series of dynamic images and video content, the campaign captures Freya on stage, behind the scenes and in everyday moments, highlighting Hollister denim as a foundation for individuality. Together, Hollister and Freya celebrate personal style, encouraging customers to show up as themselves wherever life takes them.
Extending the partnership beyond the campaign, Hollister will launch limited-edition product, serve as an official sponsor of Freya Skye’s North America and UK and European tour, and host exclusive in-store appearances across the U.S. and Europe this fall.
This season’s denim collection features an updated range of styles, including ultra-low rise, baggy fits, adjustable waist and more. Designed with comfort, versatility and trend-forward styling in mind, the assortment offers pieces that can be dressed up or down, from everyday adventures to special occasions.
“Denim has always been a staple of self-expression, and this Hollister collection reflects the personal style and individuality we see in our customers,” said Carey Collins Krug, chief marketing officer at Abercrombie & Fitch Co. “Music is central to how our customers express themselves, and Freya’s authenticity, creativity and energy make her a natural partner for this campaign.”
“Hollister has been a part of my life for as long as I can remember, and it’s always felt like a brand everyone connects to. I grew up with Hollister, so being able to partner together now feels incredibly surreal,” said Freya Skye. “Hollister’s laidback, versatile style really reflects how I live, always moving between everyday moments and being on stage, which is why I love their denim. For me, the perfect pair of jeans is something I can wear all day, no matter the occasion. I love how this collection lets you style pieces your own way while feeling comfortable and confident - it’s made for every moment.”
The campaign will roll out across digital, social and in-store channels, featuring exclusive content and behind-the-scenes moments inspired by Freya’s world in music.
The new denim collection is available now in Hollister stores and online in sizes 00 to 20, starting at $49.95.
About Hollister
Hollister creates quality apparel, accessories and fragrance made for capturing moments, creating memories and being unapologetically you. Hollister Co. is a division of Abercrombie & Fitch Co. (NYSE: ANF) and is sold through more than 500 stores worldwide and at HollisterCo.com
About Freya Skye
Rising popstar Freya Skye continues to soar into the stratosphere - amassing over 2.5 billion streams of her music and garnering over 5 million social media followers, with sold-out concerts worldwide. In everything Freya does - from unforgettable live shows to deeply personal songwriting to impactful acting - her talent and authenticity shine through. Her relatable connection with fans, her kindness, and her accessibility invite a sense of community around the globe.
Since the beginning of 2026, Freya's achievements include breaking into the Billboard Hot 100, and her debut EP "stardust" debuting in the Top 100 in both the U.S. and UK. Her breakout hit "silent treatment" landed on the cover of Spotify's Pop Rising, among others, and broke into the Top 10 on Mediabase's Top 40 Pop Radio Chart - earning unprecedented support across the UK with Capital, BBC Radio 1, and Bauer; in Australia with NOVA, Hit Network, iHeart, and Triple J; and countless others around the world. She has sold out every one of her 100+ concerts this year, growing from 200 to upwards of 7,000 tickets a market since January. Her "stardust" EP hit #1 on the Billboard Vinyl Chart and UK Vinyl Charts.
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 +4.3%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Retail - Apparel and Shoes industry, which Abercrombie falls in, has lost 6.3%. 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 EstimatesRather 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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Abercrombie is expected to post earnings of $1.90 per share for the current quarter, representing a year-over-year change of -18.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
The consensus earnings estimate of $10.46 for the current fiscal year indicates a year-over-year change of +6.1%. This estimate has changed -1.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.48 indicates a change of +9.8% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has changed -1.5%.
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 #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Abercrombie, the consensus sales estimate of $1.24 billion for the current quarter points to a year-over-year change of +2.8%. The $5.44 billion and $5.67 billion estimates for the current and next fiscal years indicate changes of +3.4% and +4.2%, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $1.47 for the same period compares with $1.59 a year ago.
Compared to the Zacks Consensus Estimate of $1.12 billion, the reported revenues represent a surprise of -0.48%. The EPS surprise was +16.67%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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.
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 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 #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, Abercrombie & Fitch (ANF - Free Report) was down 1.59% at $91.59. This move lagged the S&P 500's daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.
The teen clothing retailer's shares have seen an increase of 2.76% over the last month, surpassing the Retail-Wholesale sector's gain of 1.39% and falling behind the S&P 500's gain of 4.28%.
Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. The company's upcoming EPS is projected at $1.9, signifying a 18.10% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.24 billion, indicating a 2.76% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.46 per share and revenue of $5.44 billion. These totals would mark changes of +6.09% and +3.36%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.57% fall in the Zacks Consensus EPS estimate. Abercrombie & Fitch is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Abercrombie & Fitch currently has a Forward P/E ratio of 8.9. This signifies a discount in comparison to the average Forward P/E of 15.79 for its industry.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.
In the latest close session, Abercrombie & Fitch (ANF - Free Report) was down 2.87% at $89.77. The stock's change was less than the S&P 500's daily gain of 0.72%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
The teen clothing retailer's stock has climbed by 22.67% in the past month, exceeding the Retail-Wholesale sector's loss of 0.64% and the S&P 500's loss of 0.9%.
Analysts and investors alike will be keeping a close eye on the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.94, signifying a 16.38% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 3.22% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.61 per share and a revenue of $5.46 billion, signifying shifts of +7.61% and +3.67%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Abercrombie & Fitch. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. At present, Abercrombie & Fitch boasts a Zacks Rank of #3 (Hold).
Investors should also note Abercrombie & Fitch's current valuation metrics, including its Forward P/E ratio of 8.71. For comparison, its industry has an average Forward P/E of 16.15, which means Abercrombie & Fitch is trading at a discount to the group.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ANF in the coming trading sessions, be sure to utilize Zacks.com.
Abercrombie & Fitch (ANF - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this teen clothing retailer have returned +20.8% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Retail - Apparel and Shoes industry, to which Abercrombie belongs, has lost 1.6% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
For the current quarter, Abercrombie is expected to post earnings of $1.94 per share, indicating a change of -16.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.61 points to a change of +7.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $11.65 indicates a change of +9.8% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
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 #3 (Hold) for Abercrombie.
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 $1.25 billion indicates a year-over-year change of +3.2%. For the current and next fiscal years, $5.46 billion and $5.7 billion estimates indicate +3.7% and +4.5% changes, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $1.47 for the same period compares with $1.59 a year ago.
Compared to the Zacks Consensus Estimate of $1.12 billion, the reported revenues represent a surprise of -0.48%. The EPS surprise was +16.67%.
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.
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 #3 does suggest that it may perform in line with the broader market in the near term.
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.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ANF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Hollister posted flat Q1 2026 sales following 22% growth a year ago, with strength in the Americas and APAC.Warm-weather products and a chase-mode inventory helped Hollister respond quickly to teen demand.Abercrombie expects full-year Hollister growth despite Middle East disruptions and softer Europe demand. Hollister is increasingly proving to be an important growth engine for Abercrombie & Fitch Co. (ANF - Free Report) , despite facing near-term regional challenges. In the first quarter of 2026, Hollister delivered flat sales against a difficult comparison that included 22% growth in the year-ago period. Management emphasized that the brand continued to perform well in its core markets, particularly the Americas and APAC, where positive traffic trends and strong customer engagement supported results.
The brand's momentum is being fueled by its ability to stay closely connected with teen consumers. Categories such as graphic tees, shorts, swimwear and other warm-weather products performed particularly well in the quarter. Management noted that Hollister remains in "chase mode," allowing the company to quickly respond to emerging trends and replenish fast-selling merchandise. This agile inventory strategy has helped the brand capitalize on demand while maintaining disciplined inventory levels.
Marketing initiatives are strengthening Hollister's appeal. The company launched a graduation-season campaign featuring singer Gigi Perez and partnered with Italian sportswear brand Kappa ahead of the upcoming World Cup, reinforcing its relevance among younger shoppers. These efforts support Hollister's positioning as a fashion-forward yet value-oriented brand.
While geopolitical disruptions in the Middle East and weaker demand in parts of Europe weighed on Hollister's overall performance, management remains confident in the brand's trajectory. Executives highlighted continued strength in the Americas, positive traffic trends across channels and expectations for full-year growth. With strong product acceptance, targeted marketing investments and an agile operating model, Hollister appears well-positioned to play an increasingly significant role in the company’s long-term growth strategy.
ANF’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 33.1% year to date, underperforming the industry and the broader Retail-Wholesale sector’s declines of 4.9% and 2.3%, respectively. The stock has also lagged the S&P 500’s rally of 8.9%.
ANF Stock's YTD Performance
Image Source: Zacks Investment Research
Is ANF a Value Play Stock?ANF currently trades at a forward 12-month P/E ratio of 7.63X, which is lower than the industry average of 15.1X and notably below the sector average of 22.42X. This valuation positions the stock at a modest discount relative to its direct peers and the broader sector.
ANF P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderTapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR 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 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.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories. At present, GCO carries a Zacks Rank #1.
The Zacks Consensus Estimate for GCO’s current fiscal-year earnings implies growth of 55.2% from the year-ago figures. Genesco has delivered a trailing four-quarter earnings surprise of 3.8%, on average.
Designer Brands Inc. (DBI - Free Report) engages in the design, production, and retailing of footwear and accessories in the United States, Canada and internationally. At present, DBI carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for DBI’s current fiscal-year sales and earnings indicates growth of 0.5% and 137.5%, respectively, from the year-ago figures. DBI delivered a trailing four-quarter negative earnings surprise of 112.8%, on average.
Abercrombie & Fitch is taking a page out of rival Aritzia's playbook by adding outside footwear brands like Puma and Sperry to its assortment as the retailer turns to new categories to chase growth.
Since partnering with Sperry in April to sell select apparel and footwear styles from the brand online and in stores, Abercrombie has expanded and is now offering shoes from Puma, Frye, Hunter and GH Bass.
For now, the only place Abercrombie is offering all of the brands together is at its new 10,000-square-foot outpost in New York City where they launched for the first time this month. If the release performs well, the company could expand the full range of brands to more stores and online in the future. Currently, the only outside brands Abercrombie is selling online are Puma and Sperry.
In an interview with CNBC, the company's new managing director for the Americas Melissa Worth said the expansion into third-party brands is important for customer acquisition, but also helps retain existing shoppers and encourages them to spend more.
"Our high-value customers, how do we make sure that we're outfitting them across all of their needs? And this is a place that they can come for those things, but also a new point of discovery for a consumer that we haven't potentially acquired yet," said Worth. "So someone that could be looking for Puma or Frye, they come in … they're excited to see these offerings, they purchase one of these, as well as an outfit from us, and that's the goal in terms of how we're looking to bring it all together."
Abercrombie said it decided to launch outside footwear brands as customers ask for more from the apparel retailer. For example, the company said one of the most frequent questions customers ask on its social media channels is "Where can I buy those shoes?"
Abercrombie's move into outside brands marks a modern first for the 134-year-old company, which has long exclusively sold its own products in stores but is finding it harder to generate organic growth, expand its customer base and compete in a crowded apparel market.
Janine Stichter, a retail analyst and managing director at BTIG, doesn't expect outside brands to make up a significant portion of sales, but said they could be critical customer acquisition tools and drive more meaningful revenue over time.
"This is a strategic move on their part to bring in a like-minded customer," said Stichter. "A customer who has potential to shop the brand, maybe isn't already, and now will be introduced to the brand that way."
Category expansion overall will be key to the retailer's next chapter of growth, and blending a mix of Abercrombie-designed accessories with external footwear brands will allow the company to offer its customers more options in a cost-effective, simple way, said Stichter.
"We're increasingly seeing the consumer want [a variety of] brands in footwear, so if you can take away that complication and the process, and also be offering them the brands that they want, even if it's not hugely incremental in terms of revenue and profits … there's still that add on potential," said Stichter. "You capture more of her wallet and you give her more reason to come in the store or shop on your site."
Fizzling growthFollowing a dramatic turnaround of the business led by CEO Fran Horowitz, Abercrombie grew annual sales by over 98% between fiscal 2020 and fiscal 2024. That explosive growth moderated at its namesake brand in the most recent fiscal year.
Between fiscal 2024 and fiscal 2025, which ended in February, sales at the Abercrombie brand fell more than 1%. During the same period, comparable sales, a measure of organic growth that strips out the impact of new store openings, declined by 7%.
For the past five quarters in a row, comparable sales were either negative or flat at the brand.
Stichter said Abercrombie was lapping double-digit growth from the prior year during those quarters, which made it harder to increase sales, but it also saw execution challenges in its key dresses category.
"They came out with a wedding collection, a wedding guest collection, and that was a really big source of strength for them," said Stichter. But the following year, "it just wasn't as big or as strong, and they had to take a little bit more markdown in that category," she said.
Abercrombie is also facing stiffer competition.
One of its largest competitors, Canadian fashion brand Aritzia, saw sales grow 35% with comparable sales up 27% during its most recent fiscal year, which ended in March. The company launched its own partnership with Sperry last summer and has long offered external footwear brands in its stores and online, including Nike, Adidas, New Balance, Puma and GH Bass.
"[Abercrombie] probably looked over their shoulder at Aritzia and saw how well that's worked, whether it's a standalone category or it's just a traffic driver, and said, 'Look, we can do the same thing,'" said Stichter. "Part of the reason Aritzia has been so successful is because they've just kind of stayed top of mind, stayed really relevant for that consumer. I think Abercrombie is just trying to do the same thing, ensure continued relevance."
Abercrombie's accessory expansion at its new store has only been live for about two weeks, but the customer response has been positive so far, said Worth.
"They're thrilled with this area. We've seen them come in, we've seen them interact. We're excited so far about the initial results," she said. "We're going to learn a lot here, both in terms of what our customer is looking for, but also how to operate accessories in a physical space and where and how we can scale that across our fleet."
During the company's fiscal first-quarter earnings call last month, Horowitz said the brand's collaboration with Sperry has so far exceeded internal expectations and led to higher-than-average conversion.
From loud to understated Abercrombie is testing its footwear expansion at its new store in Soho, the heart of New York City's fashion district. Opened in early June, the three-story location replaced a smaller store the company had in the neighborhood and features Abercrombie's latest tweaks to its refreshed store format.
Throughout the brand's 2000s heyday, Abercrombie's stores were infamous for their loud music, shirtless models and the inescapable stench of its Fierce cologne.
These days, the shops are nearly unrecognizable. Instead of loud branding and low lighting, the spaces are bright, understated and elevated, and have been one of the keys to the retailer's monumental turnaround.
At the Soho location, Abercrombie debu
ted its "Heritage Meets Modern" design concept, which features elements from the company's 134-year history and archival pieces, such as a hunting coat from the 1950s designed alongside Burberry.
"It just shows such a fantastic example of what the brand has stood for for so many years," said Worth. "The partnerships that we've had with other fantastic brands and the authenticity that we bring into today's offering from a quality perspective and our breadth of offering."
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.
Shares of this teen clothing retailer have returned +23.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Retail - Apparel and Shoes industry, to which Abercrombie belongs, has gained 12.3% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Abercrombie is expected to post earnings of $2.03 per share for the current quarter, representing a year-over-year change of -12.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -24.2%.
The consensus earnings estimate of $10.62 for the current fiscal year indicates a year-over-year change of +7.7%. This estimate has changed -0.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.69 indicates a change of +10% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
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 #3 (Hold) for Abercrombie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Abercrombie, the consensus sales estimate of $1.25 billion for the current quarter points to a year-over-year change of +3.2%. The $5.46 billion and $5.7 billion estimates for the current and next fiscal years indicate changes of +3.7% and +4.5%, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $1.47 for the same period compares with $1.59 a year ago.
Compared to the Zacks Consensus Estimate of $1.12 billion, the reported revenues represent a surprise of -0.48%. The EPS surprise was +16.67%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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.
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 #3 does suggest that it may perform in line with the broader market in the near term.
Abercrombie & Fitch's torrid growth has started to slow. To counteract moderating sales and increasing competition, the retailer is selling third-party shoe brands like Puma, Frye, Hunter and GH Bass.
Choosing between a rebounding fashion icon and a beauty powerhouse requires a close look at growth sustainability. Investors often weigh Abercrombie & Fitch (ANF +3.08%) against Ulta Beauty (ULTA +1.43%) to find the strongest retail performer.
Abercrombie & Fitch has transformed from a mall-based teen retailer into a global lifestyle brand catering to young professionals. Ulta Beauty serves as a one-stop destination for both luxury and mass-market cosmetics. Both companies operate within the consumer discretionary space, yet they face distinct tailwinds and headwinds as they navigate the evolving retail landscape of 2026.
The case for Abercrombie & FitchAbercrombie & Fitch Co. operates as a global retailer among apparel stocks, managing brands like Hollister and Gilly Hicks. The company reaches a diverse customer base through a mix of owned stores and digital platforms, while sourcing its goods from roughly 124 vendors across 15 countries. It recently expanded its product variety by offering third-party footwear brands such as Puma and Sperry to complement its existing clothing lines.
In FY 2026, which ended Jan. 31, 2026, revenue reached nearly $5.3 billion, representing growth of approximately 6.7% over the previous year and continuing an upward trend from $4.3 billion in fiscal 2023. Net income for the period was approximately $566 million, resulting in a net margin of 10.7% after accounting for all business expenses. This profitability reflects the successful turnaround of its core brands and a steady improvement in its digital sales mix.
As of its January 2026 balance sheet, the debt-to-equity ratio of 0.8x shows the company uses a moderate amount of debt relative to its shareholder equity. The current ratio of 0.97x indicates it possesses enough liquid assets to cover its financial obligations due within the next year. Free cash flow for fiscal 2025 was close to $528 million, representing cash generated from operations minus capital expenditures.
The case for Ulta BeautyUlta Beauty is a market leader in the specialty beauty retail space, providing a wide range of cosmetics, fragrances, and salon services across nearly 1,591 stores. The company relies on strong partnerships with major brands like L'Oréal, with its top ten partners accounting for over half of total net sales. Growth initiatives include a partnership with Klarna to offer flexible payment options and a shop-in-shop arrangement with Target Corp (TGT +2.41%), which is currently set to conclude in August 2026.
During FY 2026, which ended Jan. 31, 2026, the retailer generated nearly $12.4 billion in revenue, an increase of approximately 9.7% year-over-year, from $11.3 billion in fiscal 2025. Net income for the period was nearly $1.2 billion, slightly lower than in 2025 but maintained a roughly steady level of performance, resulting in a net margin of 10.6%. This growth highlights the company's ability to attract consumers across both prestige and mass-market price points in a competitive landscape.
According to its January 2026 balance sheet, the company maintains a debt-to-equity ratio of approximately 0.8x, illustrating a balanced approach to financing its assets. The current ratio of 0.9x suggests that the business has sufficient liquid resources to meet all liabilities maturing within twelve months. Free cash flow for the fiscal year totaled nearly $1.1 billion, providing substantial capital for various corporate purposes.
Risk profile comparisonAbercrombie & Fitch faces significant exposure to shifting trade policies and universal import tariffs, which could increase the cost of goods. A major go-live for a new merchandising system in March 2026 presents execution risks, while ongoing legal proceedings involving a former executive continue to pose reputational and financial risks for the retailer. Finally, a strategic review of its APAC region introduces uncertainty regarding the company's future international footprint.
For Ulta Beauty, heavy reliance on top brand partners like L'Oréal and The Estée Lauder Companies Inc (EL +2.85%) creates concentration risk, as these entities account for over half of net sales. The pending end of the in-store Ulta mini-store partnership with Target in August 2026 may affect long-term store traffic, as the company continues to battle inventory shrinkage due to retail theft. Ongoing reliance on complex IT infrastructure also exposes the business to cybersecurity threats and data privacy compliance costs.
Valuation comparisonAbercrombie & Fitch appears more affordable based on future earnings estimates (Forward P/E), which measures its price relative to projected profits.
MetricAbercrombie & FitchUlta BeautySector BenchmarkForward P/E8.3x16.5x29.6xP/S ratio0.8x1.6xSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Both Abercrombie & Fitch and Ulta Beauty have a core of younger, loyal consumers that give each retailer positive long-term hopes.
Ulta has disappointed shareholders over the past year with a negative3% return over the past 52 weeks, but that needs context. In fiscal 2026, which ended in January, management aimed to drive the business to gain more market share in the prestige beauty tier, where wealthier and somewhat older consumers play, while retaining its share in the mass-market beauty segment. It reached those goals and the strategy is starting to pay off in the current fiscal year 2027. While still executing its market-share expansion plan, Ulta management says top-line sales should grow by 7%. That’s pretty good in an environment where its core consumer in the U.S. has worries about their income in a K-shaped economy. Perhaps more importantly for shareholders, profitability is rising faster than revenue, with net income growth expected to come in about 11% per share better, helped along by a $1 billion-plus share buyback occurring in calendar 2026.
Abercrombie, meanwhile, is eking out growth in its core U.S. market thanks to the expansion of product lines, such as adding baby and toddler to Abercrombie Kids. But ANF’s outperformance of fellow retailers in the stock market suffered a sudden reversal in the first half of 2026, even as the company continued to post positive gains in sales. Expectations from Wall Street appear to have gotten ahead of Abercrombie’s reality.
In the long run, both companies have a bullish outlook provided they can continue to execute on their brand positioning and growth plans. Abercrombie looks set to grow top-line revenue this year, but likely to see net income shrink. For Ulta, sales will likely retreat just a touch while net income per share gains. It’s a close call, but Ulta’s largely sterling record of appealing to young women and men since going public in 2008, plus its shift toward greater per-share profitability this year, gives it the nod.
Abercrombie & Fitch's Hollister is branching out of its apparel roots and partnering with Target to start selling home and dorm decor for the first time as both brands look to new categories to drive growth.
The collaboration, dubbed The Hollister Collection at Target, will launch online, in most Target stores and select Hollister locations on June 28 and will feature almost 60 items across men's and women's apparel and bedding.
Hollister's tie-up with Target comes as both companies contend with declines in discretionary spending and waning consumer confidence, which have forced retailers to get creative to entice shoppers to spend.
Hollister, Abercrombie's brand targeting shoppers ages 13 to 22, has been comfortably growing for much of the past year but is looking to become more of a lifestyle brand that sells more than clothes. By offering a wider assortment, especially across a larger footprint, Hollister can acquire new customers, encourage existing shoppers to spend more and create a new pipeline for organic growth.
On the other hand, Target already has a large home and dorm decor department but has long leaned on brand collaborations as a competitive differentiator, especially because they're not as common at rival Walmart. Across the business, it has regularly brought in buzzy names like Kendra Scott, Diane von Furstenberg, Bombas and Champion, even before it was dealing with sluggish sales and shrinking profits.
For both companies, the collaboration offers access to the lucrative back-to-college shopping market, which reached $88.8 billion last year, or about $1,325 in spending per person that participates, according to data from the National Retail Federation.
Within that market, spending on dorm or apartment furnishings has been steadily growing for more than a decade. In 2025, it reached $12.8 billion, second only to electronics or computer-related equipment.
Hollister's expansion into home and dorm decor comes as sister brand Abercrombie & Fitch expands into outside footwear brands like Puma, Sperry and Hunter as a means to drive growth. In interviews with CNBC, executives said category expansion across the business can both draw in new customers and entice existing shoppers to spend more.
With Target's "brick-and-mortar presence, we should be able to expose the Hollister brand to people who aren't shopping with us today," said Corey Robinson, the company's chief product officer, overseeing both the Abercrombie and Hollister brands. "And then with those customers who love us so much today, to be able to be an even bigger part of their lives is something we're looking forward to."
Under the terms of the collaboration, Hollister and Target are working together to design the products while Target, given its expertise in the space, will handle manufacturing, Robinson said. The collaboration will last at least through next year with drops expected during the fall, holiday and spring 2027 shopping seasons.
"Moving beyond just bedding and thinking about blankets, wearable blankets, plush, that's how we will evolve the partnership," Robinson said. "With our target age, dorm is top of mind. From a seasonality perspective, there's a lot of ways you can refresh your dorm, and decorate with newness based on seasonality."
The multi-season partnership, which includes apparel and bedding, marks Hollister’s debut in home décor and the next extension of the brand as students prep for college and back to school June 18, 2026 08:00 ET | Source: Abercrombie & Fitch Management Co.
NEW ALBANY, Ohio, June 18, 2026 (GLOBE NEWSWIRE) -- Hollister Co., a division of Abercrombie & Fitch Co. (NYSE: ANF), is launching The Hollister Collection at Target, marking the brand’s first move into the home and décor category. Available for purchase beginning June 28 on hollisterco.com, Target.com, in most Target stores and in select Hollister stores, the first drop of a multi-season partnership includes nearly 60 items across men's and women's apparel and bedding.
“Shopping for a college dorm room or bedroom is an exciting milestone in our customers’ lives and we’re thrilled to bring Hollister to that experience. As we expand beyond apparel to meet their evolving lifestyle needs, partnering with Target was a natural fit,” said Fran Horowitz, chief executive officer of Abercrombie & Fitch Co. “By combining the comfort and versatility Hollister is known for with Target’s expertise in designing affordable dorm and home items, this collection helps us reach more customers during important new beginnings.”
The new line features bedding, offered in twin/twin XL and full/queen, including comforters and sheets with prices ranging from $34.95 to $64.95. Accessories round out the offering with wearable throw blankets, decorative and study buddy pillows, as well as weighted plushies ranging in price from $19.95 - $39.95. In addition to bedding, the line includes fleece tops and bottoms, men’s sleep pants, and women’s sleep shorts ranging from $24.95 - $49.95 and available in sizes XS - XL.
“We approached the assortment together by translating signature Hollister details like soft textures and nostalgic prints into bedding, décor and accessories that feel authentic to our brand,” said Corey Robinson, chief product officer of Abercrombie & Fitch Co. “The collection draws on signature Hollister elements like ditsy florals, stripes, iconic logos and the signature seagull motif. Each category is intentionally connected through a shared color, print and pattern that allows customers to style what they wear and how they live in a cohesive way.”
“We’re thrilled to partner with Hollister to bring guests a first-of-its-kind home collection that reflects our continued focus on delivering fresh, distinctive products. Combining the brand’s signature laid-back style with Target’s authority in stylish, affordable and accessible home and dorm design, this collection brings a new perspective on home and dorm style,” said Mara Sirhal, senior vice president of Home Merchandising, Target. “Whether guests are refreshing a bedroom, heading to campus or creating a space that feels uniquely their own, this collection makes it easy to bring comfort, personality and great design home - all at the incredible value guests expect from Target.”
A preview of the collection is available today at Target.com ahead of the launch online and in stores on June 28. New product drops will be available ahead of the holiday season and in spring 2027.
About Hollister
Hollister creates quality apparel, accessories and fragrance made for capturing moments, creating memories and being unapologetically you. Hollister Co. is a division of Abercrombie & Fitch Co. (NYSE: ANF) and is sold through more than 500 stores worldwide and at HollisterCo.com.
About Target
Target Corporation (NYSE: TGT) brings together style, design and value to offer a distinct assortment and elevated shopping experience across more than 2,000 U.S. stores and online. Powered by more than 400,000 team members, Target serves millions of families each week and invests in the communities where they live and work to support growth and opportunity for all.
Target and Hollister are looking to the lucrative back-to-college room decor market. (Photo by Scott Olson/Getty Images)
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Hollister is taking its biggest step yet beyond apparel, teaming up with Target on a new home and dorm collection as the Abercrombie & Fitch-owned brand looks to capitalize on the fast-growing back-to-college living market.
The collaboration, dubbed The Hollister Collection at Target, launches June 28 online, in most Target stores and at select Hollister locations. The first drop includes nearly 60 products spanning bedding, décor, sleepwear and loungewear, marking Hollister’s first-ever move into home furnishings.
For Hollister, the move represents a significant evolution of a brand that has become the primary growth engine within Abercrombie & Fitch Co. While Abercrombie’s eponymous brand has cooled after a remarkable post-pandemic resurgence, Hollister continues to outperform. The teen-focused retailer generated approximately $2.74 billion in sales during fiscal 2025, up nearly 15% year-over-year and accounting for more than half of parent company revenue.
That momentum has given management confidence to explore new categories.
“Shopping for a college dorm room or bedroom is an exciting milestone in our customers’ lives and we’re thrilled to bring Hollister to that experience,” said CEO Fran Horowitz at the announcement. “As we expand beyond apparel to meet their evolving lifestyle needs, partnering with Target was a natural fit.”
Back-T0-College Major MarketBack-to-college shopping remains one of retail’s largest seasonal opportunities, with spending on dorm and apartment furnishings now representing one of the fastest-growing categories within the broader market. Students increasingly view their rooms as an extension of their personal identity, creating demand for coordinated bedding, décor and lifestyle products that complement the brands they already wear.
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Target has spent years building authority in this space. The retailer's home business has become one of its key traffic drivers, supported by exclusive brands and limited-edition collaborations that help differentiate it from rivals such as Walmart.
While Target continues to navigate uneven consumer spending, the company reported $30.5 billion in fourth-quarter sales and is forecasting a return to growth this year after a challenging period for discretionary retail categories. Executives have highlighted improving trends in home merchandise alongside growth in higher-frequency categories such as food, beauty and essentials.
And for Target, the Hollister partnership also represents another attempt to bring younger consumers into its stores and digital ecosystem.
The retailer has long relied on collaborations with fashion and lifestyle brands to generate buzz, from designer collections to partnerships with brands such as Champion and Kendra Scott. The addition of Hollister gives Target access to one of the strongest-performing Gen Z brands in American retail.
“We’re thrilled to partner with Hollister to bring guests a first-of-its-kind home collection that reflects our continued focus on delivering fresh, distinctive products,” said Mara Sirhal, Target’s senior vice president of home merchandising. “Combining the brand’s signature laid-back style with Target’s authority in stylish, affordable and accessible home and dorm design, this collection brings a new perspective on home and dorm style.”
Hollister has become an important revenue driver within Abercrombie & Fitch. Photographer: Jason Alden/Bloomberg
Hollister executives say the partnership is designed to introduce the brand to consumers who may not currently shop its stores while encouraging existing customers to spend more across a wider assortment.
“With Target’s brick-and-mortar presence, we should be able to expose the Hollister brand to people who aren’t shopping with us today,” said Corey Robinson, chief product officer for Abercrombie & Fitch Co. “And then with those customers who love us so much today, to be able to be an even bigger part of their lives is something we’re looking forward to.”
Long Term CollaborationImportantly, the launch is not intended as a short-term promotion. The companies have already committed to additional seasonal drops through the holiday season and spring 2027, signaling ambitions for a longer-term platform rather than a limited capsule collection.
“Moving beyond just bedding and thinking about blankets, wearable blankets, plush, that’s how we will evolve the partnership,” Robinson said. “With our target age, dorm is top of mind. From a seasonality perspective, there’s a lot of ways you can refresh your dorm, and decorate with newness based on seasonality.”
Whether the collaboration becomes a meaningful revenue driver remains to be seen. Yet it arrives at a moment when both companies need new growth levers.
For Hollister, it offers an opportunity to evolve into a true lifestyle brand. For Target, it provides another exclusive proposition aimed squarely at Gen Z shoppers preparing for college.
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52-Week Range$9.46▼
$28.46Dividend Yield2.81%
P/E Ratio11.00
Price Target$20.36
American Eagle Outfitters Inc. NYSE: AEO has posted consecutive earnings beats. Yet even after delivering another better-than-expected quarter on May 28, shares sold off as concerns about weakness in the core American Eagle brand and pressure on second-quarter gross margin overshadowed stellar performance at Aerie.
Since then, the stock has recovered its losses. Where shares head next is likely to depend on Aerie's ability to maintain its momentum after posting 25% comparable sales growth, whether the American Eagle brand can regain its footing, and how much pressure tariffs and other costs ultimately place on margins.
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Aerie's Strength Helps Offset American Eagle's WeaknessAmerican Eagle reported first-quarter earnings of 14 cents per share, a sharp improvement from the 29-cent-per-share loss reported a year earlier. Earnings exceeded Wall Street estimates by 3 cents. Revenue rose nearly 10% from the prior-year period to $1.2 billion, topping expectations by more than $10 million. The results marked the company's fourth consecutive quarter of earnings and revenue beats.
Total comparable sales increased 8%. Gross margin expanded 860 basis points to 38.2%, while merchandise margin improved 710 basis points. The results benefited from an inventory write-down recorded in the prior-year quarter, which weighed on margins.
Aerie and its activewear-focused OFFLINE brand were the company's standout performers. Revenue for the brands increased 34% year over year to $481 million.
On the earnings call, CEO Jay Schottenstein said he was "extremely pleased" with the continued momentum at Aerie and OFFLINE, citing strong demand across categories and channels, compelling product offerings, high customer engagement, and growing brand awareness.
The flagship American Eagle brand faced challenges during the quarter. Revenue and comparable sales each declined about 2% from a year earlier to roughly $697 million. Results across categories were mixed, with the men's business delivering its third consecutive quarter of positive performance while certain areas of the women's business, including bottoms and seasonal categories, remained under pressure.
The company said it has already begun refining its product assortment ahead of the important back-to-school season.
Second-Quarter Gross Margin Faces PressureAmerican Eagle also provided guidance calling for second-quarter operating income of between $45 million and $50 million, and comparable sales growth in the mid- to high-single digits. Gross margin is projected to decline from the previous year as the company faces a 150- to 200-basis-point tariff headwind, as well as markdown pressure at the American Eagle brand.
Momentum at Aerie and OFFLINE is expected to continue in Q2, with comparable sales growth in the high teens to low twenties. On the flip side, the American Eagle brand is expected to remain under pressure, with comparable sales ranging from flat to down low single digits. Schottenstein did note, however, “While May started slowly for the AE brand, we're encouraged by the improvement in the business that we have seen over the last few weeks.”
For the full year, the retailer expects operating income of $390 million to $410 million, supported by mid-single-digit comparable sales growth. Gross margin is expected to increase year over year.
Multiple Analysts Lower Price Targets Following Q1 ReportDespite notching another earnings and revenue beat, investors appeared focused on the challenges facing the American Eagle brand and the expected decline in second-quarter gross margin.
At least six analysts lowered their price targets following the report. The stock currently carries a consensus Hold rating and a 12-month price target of $20.36. Price targets range from a low of $16 to a high of $31.
The average price target has declined steadily since early January, when it stood above $28. Even so, it remains well above the sub-$10 consensus target seen a year ago.
AEO's 2026 Pull Back Follows Major RallyThe Q1 report and the wave of analyst price-target cuts that followed sent the stock down roughly 12%, extending an already difficult stretch for shareholders. Year to date, shares are down by over 30%.
However, the recent weakness follows a powerful rally in the second half of 2025. Helped by a string of positive earnings reports, shares climbed from a 52-week low of less than $10 in July to a 52-week high above $28 in early January. Despite the pullback over the last several months, the stock remains up around 77% over the past year.
American Eagle Outfitters, Inc. (AEO) Price Chart for Friday, June, 19, 2026
The pullback has also made the stock's valuation more attractive. American Eagle Outfitters' price-to-earnings ratio sits around 11x, well below the retail industry average of 16.3x. However, the stock is not the cheapest among some of its peers. Abercrombie & Fitch Co. NYSE: ANF trades at roughly 8.3x earnings, while The Gap Inc. NYSE: GAP trades at about 8.5x.
While shares of American Eagle have recovered from their post-earnings decline, investors are still weighing the strength of Aerie against ongoing challenges at the American Eagle brand. In the upcoming quarters, attention is likely to remain focused on whether Aerie's momentum can continue, whether the American Eagle brand can regain its footing, and how much pressure tariffs, markdowns, and other costs ultimately place on margins.
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Abercrombie & Fitch (ANF - Free Report) came out with quarterly earnings of $1.47 per share, beating the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.59 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +16.36%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $3.56 per share when it actually produced earnings of $3.68, delivering a surprise of +3.37%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Abercrombie, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.11 billion for the quarter ended April 2026, missing the Zacks Consensus Estimate by 0.48%. This compares to year-ago revenues of $1.1 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Abercrombie shares have lost about 40.6% since the beginning of the year versus the S&P 500's gain of 9.8%.
What's Next for Abercrombie?While Abercrombie has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Abercrombie was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.52 on $1.26 billion in revenues for the coming quarter and $10.63 on $5.47 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Torrid Holdings (CURV - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on June 4.
This women's apparel retailer is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -133.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Torrid Holdings' revenues are expected to be $240.35 million, down 9.6% from the year-ago quarter.
5 Stocks Using Buybacks to Drive Serious Upside Into 2026Abercrombie & Fitch NYSE: ANF reported record first-quarter fiscal 2026 net sales and maintained its full-year outlook, even as geopolitical pressure in the Middle East and parts of Europe weighed on results in the EMEA region.
Chief Executive Officer Fran Horowitz said the company delivered its 14th consecutive quarter of net sales growth, with first-quarter sales reaching $1.1 billion, up 2% from a year earlier. Operating margin was 8%, above the company’s plan, while diluted earnings per share came in at $1.47, also above the company’s expected range.
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Why the American Eagle Stock Rally Isn't Just Speculation “One quarter in, the team continues to stay agile in a dynamic global environment,” Horowitz said. She added that 2026 is “shaping up to be another year of consistent progress” as the company maintained its outlook for net sales, operating margin and earnings per share.
EMEA Weakness Offsets Growth in Americas and APAC By region, first-quarter net sales rose 3% in the Americas and 24% in APAC, while EMEA sales declined 10%. Chief Financial Officer Robert Ball said EMEA demand was “directly impacted” as conflict in the Middle East ramped up, reducing total company net sales growth by more than 50 basis points relative to the company’s prior outlook.
Buffett’s $150B Bond Move: What It Really Means for InvestorsComparable sales declined 1% overall. Americas comparable sales rose 1%, APAC comparable sales increased 15%, and EMEA comparable sales fell 11%.
Horowitz said continued growth in the U.K. was more than offset by declines in the Middle East and other European markets. She said the company has responded by controlling receipts and adjusting promotions to match demand trends.
Ball said the company expects “more of the same” from the Middle East impact as it moves through the balance of the season. He said management is adjusting inventory and aligning promotions in the region while staying close to demand trends.
Abercrombie Brands Grow, Hollister Flat Against Prior-Year Record Abercrombie brands posted net sales growth of 3% on flat comparable sales. Horowitz said the business saw positive average unit retail, or AUR, supported by customer response to spring assortments, with fleece, denim and wovens performing well in the Americas and U.K.
Hollister brands were flat compared with last year’s first-quarter record, with comparable sales down 2%. Horowitz said Hollister grew in the Americas and APAC, but those gains were offset by Middle East and European demand pressure. She cited graphic tees, shorts, swim and other warm-weather categories as areas of strength as the brand transitioned into spring.
During the question-and-answer session, Horowitz said both brands remain healthy and that the company is not seeing changes in performance across customer cohorts. “They’re showing up,” she said of consumers. “We’re positioned well with two healthy brands.”
Executives also highlighted brand collaborations. Abercrombie recently partnered with Sperry on footwear and apparel, a launch Horowitz said exceeded internal expectations and generated higher-than-average conversion. Hollister partnered with Kappa on a collection tied to international football ahead of the World Cup.
Tariffs, Freight and Investments Shape Margin Outlook Operating income was $89 million in the quarter, compared with $102 million a year earlier. Ball said the 130-basis-point decline in operating margin was primarily due to 90 basis points of increased marketing investment and about 90 basis points of ERP implementation costs. These were partially offset by AUR and foreign currency benefits to gross margin.
Tariff pressure totaled 180 basis points year over year in the first quarter, but Ball said it was fully offset by favorable freight costs. Tariff expense was lower than anticipated due to the timing and level of tariff rates in the quarter.
For fiscal 2026, the company now assumes a 15% tariff on all global imports into the U.S. effective for the second half of the year, along with a 10% effective tariff rate for the second quarter. Ball said those assumptions translate to about 20 basis points of full-year gross margin pressure, improved from the 70 basis points assumed in March. He said the benefit is expected to be offset by elevated freight costs and continued investments in marketing and stores.
The company has applied for about $100 million in IEEPA tariff refunds but has not included any benefit from those applications in its outlook.
Full-Year Guidance Maintained Abercrombie & Fitch maintained its full-year outlook for net sales growth of 3% to 5% from fiscal 2025 sales of $5.27 billion. The company expects growth across brands, growth in the Americas, and EMEA sales slightly below 2025 levels given current trends in the Middle East and parts of Europe.
Management continues to expect full-year operating margin of 12% to 12.5%, a tax rate around 30%, and diluted earnings per share of $10.20 to $11. The company expects capital expenditures of about $225 million.
For the second quarter, the company expects net sales to rise 2% to 4% from $1.2 billion a year earlier. It forecast operating margin of about 10%, including roughly $20 million, or about 120 basis points, of unfavorable tariff impact net of mitigation efforts. Second-quarter diluted earnings per share are expected to range from $1.80 to $2.
Ball said the company expects to deliver about 130 new store experiences this year, including 50 new stores and 80 remodels and right-sizes. It expects to close about 20 stores, making it a net store opener for the year.
ERP Upgrade Complete, Share Repurchases Continue The company completed the implementation of its upgraded merchandising ERP system in March. Ball said the company proactively limited certain third-party orders during the implementation, reducing top-line growth by about 100 basis points in the first quarter. Normal operations resumed in April.
Horowitz said the ERP upgrade should support long-term channel and category expansion and help the company onboard global partners, channels and geographies. She also said the company is testing ways to use artificial intelligence across areas including customer care, forecasting, inventory and customer experience.
Abercrombie & Fitch ended the quarter with $594 million in cash and cash equivalents, about $1 billion in liquidity and $25 million in marketable securities. Inventory at cost declined 2%, while inventory units were up low single digits.
The company repurchased $105 million of shares during the quarter, equal to 3% of shares outstanding at the beginning of the year. It ended the quarter with $745 million remaining under its current share repurchase authorization and continues to expect about $450 million in share repurchases for fiscal 2026.
About Abercrombie & Fitch NYSE: ANFAbercrombie & Fitch Co NYSE: ANF is an American specialty retailer that designs, markets and sells casual apparel and accessories for men, women and children. Founded in 1892 by David T. Abercrombie and Ezra Fitch, the company evolved from an outdoor gear outfitter to a global lifestyle brand renowned for its relaxed, preppy aesthetic. Its product assortment includes tops, bottoms, outerwear, intimates, swimwear, fragrances and personal care items.
The company operates under multiple brand names, including Abercrombie & Fitch, Abercrombie Kids, Hollister and Gilly Hicks, each targeting distinct consumer segments from teens to young adults.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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For the quarter ended April 2026, Abercrombie & Fitch (ANF - Free Report) reported revenue of $1.11 billion, up 1.5% over the same period last year. EPS came in at $1.47, compared to $1.59 in the year-ago quarter.
The reported revenue represents a surprise of -0.48% over the Zacks Consensus Estimate of $1.12 billion. With the consensus EPS estimate being $1.26, the EPS surprise was +16.36%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Abercrombie performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable store sales - Total - YoY change: -1% versus -0% estimated by three analysts on average.Number of stores - Total (EOP): 834 versus 836 estimated by three analysts on average.Comparable store sales - Hollister - YoY change: -2% versus -0.4% estimated by two analysts on average.Number of stores - Abercrombie: 309 compared to the 310 average estimate based on two analysts.Number of stores - Hollister: 525 versus 526 estimated by two analysts on average.Net sales by brand family- Hollister: $549.1 million versus $557.47 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -0.1% change.Net sales by brand family- Abercrombie: $564.72 million versus the four-analyst average estimate of $565.69 million. The reported number represents a year-over-year change of +3.1%.View all Key Company Metrics for Abercrombie here>>>
Shares of Abercrombie have returned -12.3% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Abercrombie & Fitch Co. (NYSE:ANF) shares jumped 11.1% to trade at $83.20 this morning, the retailer brushing off a profit decline with stronger-than-expected earnings. Abercrombie did admit that the Middle East conflict hindered consumer demand and issued a weak current-quarter outlook, likely keeping gains in check.
Today's pop triggered a breakout past the $80 level which kept a tight lid on early-May gains. The equity is down 33% for 2026, but still poised to mark its sixth win out of the last seven. There's potential for more upside though, per ANF's 14-Day Relative Strength Index (RSI), last spotted at 36 and near "oversold" territory.
Plus, the equity has outperformed options traders' volatility expectations over the last 12 months, per its Schaeffer's Volatility Scorecard (SVS) of 92 out of 100.
The retailer is gaining attention in the options pits, with 5,000 calls and 3,000 puts across the tape so far, which is seven times the amount typically seen at this point. Drawing the most attention is the weekly 5/29 75-strike put, with openings at the weekly 6/5 90-strike call.
Abercrombie & Fitch posted mixed fiscal first-quarter results on Wednesday and weaker-than-expected guidance after the conflict in the Middle East "directly impacted" sales, the company said.
Despite those challenges, its shares jumped about 12% in afternoon trading as the company easily topped Wall Street's earnings estimates.
Sales in Abercrombie's Europe, Middle East and Africa region fell 10% during the quarter, driven by a slowdown in demand at the brand's Hollister banner that came as the conflict ramped up, finance chief Robert Ball said on a call with analysts.
Overall, it reduced first-quarter total company net sales growth by more than 0.5 percentage point relative to the retailer's outlook, he said.
"We're focused on what we can control, including our inventory levels and marketing investments, ensuring we can respond to what's happening in real time," CEO Fran Horowitz added on the call. "Despite these EMEA headwinds, we expect total sales growth for the second quarter, along with full-year 2026, which would be our fourth consecutive year of net sales growth."
In the current quarter, Abercrombie expects earnings per share to be between $1.80 and $2, well behind estimates of $2.54, according to LSEG.
Though the company's outlook for the current quarter was worse than analysts expected, it reaffirmed its full-year guidance. Abercrombie anticipates net sales will rise 3% to 5% for the fiscal year, with earnings per share of $10.20 to $11.
Despite the slowdown in EMEA, which represents about 15% of total company sales, Abercrombie's companywide sales climbed 2%. Still, that growth didn't come from organic consumer demand and was instead driven by new store openings and favorable foreign exchange rates, Ball said.
Here's how the apparel company did in its first fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
Earnings per share: $1.47 vs. $1.28 expectedRevenue: $1.11 billion vs. $1.12 billion expectedThe company's reported net income for the three-month period that ended May 2 was $67.13 million, or $1.47 per share, compared with $80.41 million, or $1.59 per share, a year earlier.
Sales rose to $1.11 billion, up about 2% from $1.10 billion a year earlier.
When asked about its current quarter outlook, and what it expects to change in the back half of the year, Ball mentioned easier comparisons with last year's results and lower marketing spending, among other factors, not an expected improvement in demand.
"It is a balanced story here. Tariffs and freight, by the time we get to year-end, will be just slight headwinds year over year," Ball said. Aside from the challenges its seeing in the Middle East and the EMEA region, the company is seeing modest growth in average unit retail, which is funding the investments its making and keeping it in line with a 12% to 12.5% operating margin, Ball said.
Unlike many of its peers, Abercrombie is factoring in recent reductions in tariff rates after the U.S. Supreme Court ruled President Donald Trump's so-called reciprocal tariffs are illegal, which helped its financial outlook.
It's now expecting tariffs to impact profitability by 0.2 percentage point in fiscal 2026, compared with previous expectations of around 0.7 percentage point. It said it has applied for a tariff refund of around $100 million but didn't factor that potential influx into its outlook.
Abercrombie & Fitch ANF saw a notable increase of 13% in its stock price following a strong Q1 earnings report that exceeded expectations. The company also reaffirmed its full-year outlook, easing investor worries about slowing momentum and geopolitical challenges in the EMEA region. Although the Q2 earnings per share (EPS) guidance was somewhat conservative, the overall sentiment from the report was more positive than anticipated given ongoing regional disruptions and decreasing comparable sales trends.
Q1 revenue rose 1.5% year-over-year to a record $1.11 billion, aligning with forecasts, while earnings surpassed consensus estimates. This was largely due to effective merchandise margin management and careful expense control, which helped mitigate weaker traffic in certain international markets. Revenue from the Americas, ANF's largest market, grew by 3%. Both Abercrombie and Hollister experienced robust store and digital traffic, indicating that the core U.S. consumer remains resilient amid broader discretionary spending challenges. EMEA sales fell by 10%, as strong performance in the UK was overshadowed by declines in the Middle East and other European markets due to escalating regional conflicts. Management is responding by carefully managing inventory and adjusting promotions to protect margins and inventory health. Meanwhile, APAC revenue surged by 24%, though it still constitutes a small portion of total sales, having a limited effect on overall growth. Comparable sales (comps) dipped by 1%, reflecting a continued slight slowdown from previous quarters. Hollister's comps decreased by 2%, trailing behind Abercrombie, which had been the primary growth driver in recent times, possibly indicating a moderation in demand for teen apparel. The company also pointed out long-term growth prospects in new categories like Abercrombie Baby & Toddler, along with plans to expand franchise, wholesale, and licensing partnerships. While Abercrombie & Fitch's results were not without flaws, they were better than expected, especially amid concerns regarding slowing comps and increased pressure in EMEA. A significant positive was the management's reaffirmation of full-year guidance, contrasting with the cautious outlooks from other apparel brands such as American Eagle Outfitters AEO and Gap GAP . Investors were also reassured by ANF's commitment to maintaining pricing discipline, avoiding aggressive promotions despite weaker international demand. However, the decline in comps warrants close observation, particularly as Hollister has lost some momentum after previously driving growth. ANF continues to outperform many mall-based apparel competitors, but maintaining premium valuation multiples may depend on demonstrating top-line growth once geopolitical issues and consumer spending pressures stabilize.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Abercrombie & Fitch Co. is reiterated as a Strong Buy, reflecting resilient performance and a significant valuation discount despite macro headwinds. ANF delivered its 14th consecutive growth quarter, beat EPS expectations, and raised 2026 guidance, with robust buybacks and a debt-free balance sheet. Management targets ~$450 million in 2026 buybacks (>12% yield), maintains aggressive expansion plans, and expects a more manageable tariff impact now.
Abercrombie & Fitch (NYSE:ANF) shares rose about 12% after the company reported first-quarter results that beat profit expectations, while revenue slightly missed and comparable sales declined.
For the quarter ended May 2, the company posted adjusted earnings of $1.47 per share, above analyst expectations of $1.28.
Net sales rose 2% year over year to $1.11 billion, narrowly missing consensus estimates of $1.12 billion.
Comparable sales fell 1%, compared with expectations for flat performance.
The company’s 14th consecutive quarter of revenue growth was driven by a 3% increase in the Americas and a 24% jump in APAC, while EMEA declined 10%.
Abercrombie brand sales rose 3%, while Hollister was flat.
Looking ahead, the company maintained its full-year outlook, expecting net sales growth of 3% to 5% and net income per diluted share of $10.20 to $11. It also reiterated plans for approximately $450 million in share repurchases for the year.
For the second quarter, Abercrombie & Fitch forecast net sales growth of 2% to 4% and earnings per share of $1.80 to $2, alongside at least $150 million in buybacks.
“With our customer at the center of everything we do and a strong foundation in place, we remain on offense across product and marketing and are confident in our path to deliver full-year net sales growth across brands, double-digit operating margins, strong cash flow and earnings per share growth to create long-term value for shareholders,” Abercrombie CEO Fran Horowitz said in a statement.
Jefferies analysts wrote that the total company results came in better than feared, with comparable sales performance slightly ahead of expectations and Abercrombie-branded comps notably more resilient than anticipated, coming in flat versus expectations for a decline. The firm believes that this suggests underlying brand strength is holding up better than the Street had modeled, even as overall comps remained negative.
On regional performance, Jefferies highlighted continued strength in the Americas and APAC offset by a sharper downturn in EMEA, which it attributed to a tougher geopolitical and demand backdrop. It flagged EMEA as a key ongoing pressure point for the growth mix.
On margins, Jefferies noted that both operating margin and EPS exceeded the company’s prior outlook, despite softer revenue and concerns around promotions.
The firm said the result points to continued discipline on costs and a favorable brand mix effect supporting profitability.
Shares of Abercrombie & Fitch ANF rose sharply on Wednesday after the retailer reported better-than-expected fiscal first-quarter earnings, helping ease investor concerns despite weaker comparable sales and softer second-quarter guidance.
Abercrombie stock climbed more than 12% in the trading session.
The rally came after shares had fallen roughly 41% this year following disappointing holiday sales and a weaker fiscal-year outlook earlier in 2026.
The company reported adjusted earnings of $1.47 per share for the quarter ended May 2, ahead of analyst estimates of $1.28 per share, according to FactSet.
However, profit declined from $1.59 per share reported during the same period last year.
Net sales rose 1.5% year over year to $1.11 billion, slightly below Wall Street expectations of $1.12 billion.
Comparable sales declined 1% during the quarter, reflecting flat sales at the Abercrombie brand and a 2% decline at Hollister.
Analysts had expected comparable sales growth of 0.3%.
Company executives said demand trends varied significantly across geographic regions during the quarter.
Chief Executive Fran Horowitz said the company continued seeing strength across the Americas and Asia-Pacific markets, while demand weakened across Europe, the Middle East, and Africa amid escalating geopolitical tensions.
“We are proactively managing inventory and marketing to support the region,” Horowitz said, adding that Abercrombie is also continuing to invest in stores to strengthen its brands and customer experiences.
The retailer maintained its full-year outlook, projecting net sales growth of 3% to 5% and annual earnings between $10.20 and $11 per share.
Wall Street currently expects earnings of approximately $10.68 per share alongside sales growth of about 3.8%.
Second-quarter guidance, however, disappointed investors and analysts.
Abercrombie forecast second-quarter earnings between $1.80 and $2 per share, well below analyst expectations of $2.54 per share.
The company also guided for second-quarter sales growth of 2% to 4%, roughly in line with expectations.
Margin concerns remain a key focusDespite the earnings beat, analysts continued highlighting concerns around profitability trends and margin sustainability.
William Blair maintained a Market Perform rating following the report.
“The story to us remains on the margin line, where we continue to see signs of fragility,” analyst Dylan Carden wrote. “We maintain that the largest risk here is worsening profitability.”
The company also updated investors on the expected impact of tariffs and freight costs.
Chief Financial Officer Robert Ball said first-quarter tariff-related expenses came in lower than expected due to the timing and level of tariff rates during the quarter.
Ball said updated assumptions now imply approximately 20 basis points of gross margin pressure for the full year, an improvement from the 70 basis points projected in the company’s March outlook.
“However, we expect that relief to be offset by elevated freight costs and continued investments in marketing and stores,” Ball said during the earnings call.
Abercrombie maintained its full-year operating margin outlook in a range of 12% to 12.5%.
William Blair noted that while the first-quarter sales miss was modest and market reaction appeared “better-than-feared,” they remained cautious regarding management’s expectations for stronger sales and margin performance during the second half of the year.
The firm said they would remain cautious on the back-half outlook “given the similar set-up to last year, when management continued to walk down profitability expectations throughout the year.”
Abercrombie & Fitch Co. NYSE: ANF surged Wednesday after the retailer delivered another quarter of better-than-expected earnings and extended its streak of sales growth to 14 consecutive quarters.
Shares of the apparel and accessories retailer, whose core brands include Abercrombie and Hollister, jumped about 12% following the report, helping revive momentum in a stock that has been under heavy pressure in recent months.
Get Abercrombie & Fitch alerts:
Abercrombie Extends Winning StreakAbercrombie reported first-quarter earnings of $1.47 per share, down from $1.59 a year earlier, though the result handily topped Wall Street expectations for $1.26 per share. Revenue rose 1.5% year over year to $1.1 billion, but was roughly $8.2 million short of analysts’ estimates. Operating margin was 8% of sales, above the company’s outlook of around 7%.
Abercrombie & Fitch Today
ANF
Abercrombie & Fitch
$90.65 +5.32 (+6.24%)
As of 06/11/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$65.45▼
$133.11P/E Ratio8.70
Price Target$112.64
Results were supported by strength in the Americas, where sales rose 3%, and the Asia-Pacific (APAC) region, which posted 24% growth. The company saw weakness in Europe, the Middle East, and Africa (EMEA), however, as the ongoing conflict in the Middle East weighed on consumer demand.
In terms of brand performance, Abercrombie brands posted 3% year-over-year net sales growth, while Hollister reported flat net sales and a 2% decline in comparable sales.
The company also said it completed the implementation of its upgraded merchandising enterprise resource planning (ERP) system, helping to ease investor concerns about further disruptions tied to the transition.
Outlook Remains Intact Despite Middle East HeadwindsAbercrombie issued a second-quarter outlook and reiterated its full-year guidance. For the second quarter, the company said it anticipates net sales growth of 2% to 4%, with net income per diluted share of $1.80 to $2. Operating margin is expected to be around 10%.
For the full year, Abercrombie continues to expect net sales growth of 3% to 5%, earnings per diluted share of $10.20 to $11, and operating margin between 12% and 12.5%. The company also continues to expect to repurchase around $450 million of shares.
The retailer also issued an improved outlook on tariffs, saying it now expects an unfavorable impact of roughly 20 basis points, an improvement from its prior forecast of around 70 basis points.
During the earnings call, Chief Financial Officer Robert Ball said, “We're entering the middle of 2026 with clear priorities, healthy brands, and a strong playbook. We're operating with discipline and flexibility in a mixed environment, and we're monitoring our markets, particularly the Middle East, while remaining nimble and tight with inventory.”
He added, " This is the same model we've consistently used to successfully manage through a wide range of environments, and we're confident in our ability to deliver another year of growth and profitability."
Q1 Earnings Help Restore Momentum After Sharp PullbackThe last six months have been volatile for Abercrombie stock. Shares surged at the end of November after the company delivered better-than-expected third-quarter results, driving the stock from around $66 ahead of the report to a 52-week high above $133 by Jan. 9.
Abercrombie & Fitch Company (ANF) Price Chart for Friday, June, 12, 2026
Momentum reversed course shortly afterward, however, after the company tweaked its full-year outlook, indicating net sales growth and operating margin would likely come in at the lower end of its prior forecast. The update caused shares to plunge nearly 18%.
The stock came under pressure again after the company’s fourth-quarter earnings report in early March. Although Abercrombie reported record fiscal 2025 results with better-than-expected earnings and year-over-year revenue growth, investors seemed to focus on concerns about tariff pressures and potential disruptions tied to the ERP transition.
Since then, shares have continued to trend lower, falling nearly 15% over the past three months. Year to date, the stock is down more than 30%, despite the May 27 jump.
Despite the recent pressure, however, shares of Abercrombie have still delivered strong longer-term gains, rising about 10% over the past year and 90% over the last five years.
Analysts See Significant Upside PotentialWall Street remains bullish on Abercrombie, which currently carries a Moderate Buy consensus rating based on eight Buy ratings and five Holds.
The average analyst price target of $116 implies roughly 40% upside from its recent price of just under $84. Even the lowest price target of $92 suggests shares may still have room to run, while the highest target of $149 points to significant additional upside potential.
The recent pullback may also make Abercrombie’s valuation look increasingly attractive to investors. With a price-to-earnings ratio below 8, the stock is trading at a substantial discount to the broader retail industry, which has an average P/E ratio of around 17.5.
Abercrombie also trades at a lower multiple than several key competitors, including American Eagle Outfitters Inc. NYSE: AEO, which has a P/E ratio of 16, Urban Outfitters Inc. NASDAQ: URBN at 15, and Gap Inc. NYSE: GAP, which trades at a P/E ratio above 11.
Abercrombie continues to show resilience despite facing some ongoing headwinds. With Wall Street still largely bullish and the stock trading at a discounted valuation relative to peers, investors may increasingly view the recent pullback as a potential buying opportunity.
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Key Takeaways ANF posted record Q1 FY26 sales of $1.11B, up 1.5%, marking 14 straight growth quarters.APAC sales jumped 24% and comps 15%, while EMEA fell 10% as the Middle East conflict hit demand.Operating income fell 18.5% as costs rose; ANF kept FY26 targets and repurchased $105M of shares. Abercrombie & Fitch Co. (ANF - Free Report) 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, 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 came below the Zacks Consensus Estimate of $1.12 billion. The quarter marked 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. Our model expects revenues growth of 3.3% in Americas and 3.9% in EMEA but down 7.6% in APAC.
ANF's shares have increased more than 10% following the company's quarterly results. This Zacks Rank #4 (Sell) stock has lost 14.7% in the past three months compared with the industry's 9.1% drop.
Abercrombie Brands’ PerformanceBy brand, Abercrombie net sales rose 3% to $564.7 million, while Hollister net sales were essentially flat at $549.1 million. Our model predicted sales growth of 2.1% for the Abercrombie brand and 4% for Hollister.
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.
Key Retail Stock PicksKohl's Corporation (KSS - Free Report) , which is a department store chain, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KSS delivered a trailing four-quarter earnings surprise of 72.3%, on average. The Zacks Consensus Estimate for KSS’ current financial-year sales indicates a drop of 1% from the year-ago number.
Levi Strauss & Co. (LEVI - Free Report) , which is a designer and marketer of jeans, casual wear and related accessories, currently carries a Zacks Rank of 2.
LEVI delivered a trailing four-quarter earnings surprise of 21.4%, on average. The Zacks Consensus Estimate for Levi Strauss’ current financial-year sales indicates growth of 5.2% from the year-ago number.
Fossil Group, Inc. (FOSL - Free Report) , which is a designer and marketer of fashion accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current financial-year earnings is expected to rise 87.6% from the corresponding year-ago reported figure. FOSL delivered an earnings surprise of 86.4% in the last reported quarter.
Shares of Abercrombie & Fitch (ANF +6.20%) rose on Wednesday after the apparel seller's earnings topped Wall Street's estimates.
Image source: Getty Images.
Consistent sales growth Abercrombie & Fitch's net sales rose 2% year over year to $1.1 billion in its fiscal 2026 first quarter, which ended on May 2. That marked the retail chain's 14th straight quarter of gains.
Sales in the company's Europe, Middle East, and Africa (EMEA) division fell 10% due to the ongoing conflict in the region. However, these declines were offset by a 3% rise in Abercrombie & Fitch's Americas segment and a 24% surge in its Asia-Pacific business.
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Still, tariff-related costs weighed on the retailer's profits. Its operating margin declined to 8% from 9.3% in the prior-year quarter.
All told, Abercrombie & Fitch's earnings fell 8% to $1.47 per share. Yet that was well above analysts' estimates, which had called for per-share profits of $1.28.
Profitability is set to strengthen Fortunately, management expects those tariff-related headwinds to lessen in the coming quarters. The company is on track to achieve its full-year guidance for net sales growth of 3% to 5% and earnings per share of $10.20 to $11.00.
Abercrombie & Fitch plans to pass much of these profits on to its investors via its sizable stock buyback program.
"We're tracking to another year of top-line growth, double-digit operating margins, expanding earnings per share, and strong cash flow, enabling us to target returning $450 million to shareholders this year via share repurchases," CEO Fran Horowitz said during a conference call with analysts.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Abercrombie & Fitch. The Motley Fool has a disclosure policy.
On May 27, 2026, Abercrombie & Fitch Co ANF shares rose 8.9% today, bringing the current price to $81.42. This price is within a 52-week range of $65.45 to $133.11. The recent increase comes after a challenging year where shares experienced a year-to-date decline of 35.3%.
GF Value™ verdict: Current price of $81.42 is 25.2% below GF Value™ of $108.88.GF Score™ of 85/100 indicates a strong overall assessment.No insider transactions in the last 3 months suggest a neutral signal from company insiders. Is ANF Overvalued or Undervalued? With the current price of $81.42 compared to the GF Value™ estimate of $108.88, Abercrombie & Fitch Co appears to be undervalued by approximately 25.2%. This margin of safety suggests that the stock may offer a potential opportunity for investors looking for value. The GF Valuation label indicates that the stock is modestly undervalued, signifying that there is room for price appreciation based on the intrinsic value calculation.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation presents a potential upside, investors should remain cautious as market conditions can change and affect stock performance.
How Does ANF's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 7.7x 13.0x Forward P/E 7.6x N/A The current P/E (TTM) of 7.7x is significantly below its 5-year median P/E of 13.0x, indicating that the stock is trading at a discount compared to its historical valuation levels. This analysis aligns with the GF Value™ verdict, reinforcing the notion that ANF is undervalued based on its past performance metrics.
What Does ANF's GF Score™ Tell Us? Metric Rating GF Score™ 85 Financial Strength 8/10 Profitability 8/10 Growth 8/10 Valuation 4/10 Momentum 7/10 The GF Score™ of 85/100 highlights Abercrombie & Fitch Co's strong financial health and profitability, with particularly strong ratings in Financial Strength, Profitability, and Growth, each scoring 8/10. However, the Valuation rank of 4/10 suggests that the stock's current pricing may not fully reflect its potential given its strong operational metrics. This contrast between high operational scores and lower valuation indicates that while the company is performing well, its market price may not align with its underlying strength.
What Are Insiders Doing with ANF Stock? There have been no insider transactions reported in the last 3 months for Abercrombie & Fitch Co. This lack of activity can suggest a neutral sentiment among insiders regarding the stock's future performance. In general, consistent insider buying can indicate confidence in the company’s prospects, while selling may suggest the opposite. The absence of transactions leaves the current sentiment ambiguous.
What This Means for Investors Based on the GF Value™ assessment, Abercrombie & Fitch Co is currently undervalued, presenting a potential opportunity for investors seeking value in the retail sector. However, it is important to consider the broader market context and individual investment strategies before making decisions.
For the complete analysis, visit the Abercrombie & Fitch Co ANF stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ANF's GF Score™?
ANF has a GF Score™ of 85/100, indicating a strong overall assessment based on several key financial metrics.
Is ANF overvalued or undervalued?
ANF is currently undervalued with a GF Value™ of $108.88 compared to its current price of $81.42, suggesting a potential upside.
What is ANF's P/E ratio?
ANF's P/E (TTM) ratio is 7.7x, which is significantly lower than its 5-year median P/E of 13.0x, indicating that the stock is trading at a discount relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways ANF expects 3-5% revenue growth and a 12-12.5% operating margin for 2026.Americas sales rose 3% and APAC climbed 24%, offsetting a 10% EMEA decline where Hollister demand weakened.ERP cutover paused some orders, costing 100 bps of Q1 growth; normal operations resumed in April. Abercrombie & Fitch Co. (ANF - Free Report) used its first-quarter 2026 earnings call to stress continuity rather than reset. Management held its full-year outlook, pointed to a completed ERP upgrade and said that the business remains on track for another year of sales growth and double-digit operating margin.
That message mattered because the quarter again exposed the main pressure point. Strength in the Americas and APAC offset softness in EMEA, where the Middle East conflict weighed on demand, especially at Hollister.
ANF Holds Full-Year Line
Chief executive officer Fran Horowitz said that the company started 2026 from a position of strength and remains focused on delivering a fourth straight year of sales growth. She emphasized that management is maintaining its full-year outlook on net sales, operating margin and earnings per share despite disruption in EMEA.
Chief financial officer Robert Ball reiterated that stance, keeping fiscal 2026 revenue growth at 3-5% and the operating margin at 12-12.5%. The company also maintained its earnings per share projection of $10.2-$11 and share repurchases of around $450 million.
That steadiness came even as Abercrombie posted mixed headline results versus the Zacks Consensus Estimate. Earnings of $1.47 per share topped the estimate of $1.26, while revenues of $1.11 billion lagged the estimate of $1.12 billion.
Abercrombie Leans on Core Markets
Horowitz said that the business continued to see healthy traffic and conversion in the Americas, with balanced demand across brands. She highlighted the U.K. as another constructive market, calling it an example of the company successfully exporting its operating playbook.
On the numbers, Americas sales rose 3% and APAC climbed 24%, while EMEA fell 10%. At the brand level, Abercrombie posted 3% sales growth and Hollister was flat against a strong prior-year comparison.
Management also said that both brands grew in the Americas, supported by positive traffic, modest average unit retail gains and unit growth. That regional performance remained central to the company’s confidence in its outlook.
ANF Says EMEA Pressure Is Contained
The clearest area of investor scrutiny was EMEA. Ball said that the Middle East conflict reduced first-quarter total company sales growth by more than 50 basis points relative to management’s prior outlook, with the impacts skewed heavily toward Hollister.
Analysts repeatedly pressed management on whether promotional intensity had risen in the region and whether the weakness would deepen. Ball and Horowitz have said that the company is responding with tighter inventory control and promotions aligned to demand, while keeping the broader model intact.
The tone was cautious but not alarmed. Management did not offer brand-by-region guidance, yet it said that the second-quarter and full-year views already incorporate continued pockets of softness in EMEA.
Abercrombie Puts ERP Behind It
Another important call theme was the merchandising ERP implementation. Ball said that the temporary pause in certain third-party orders during the cutover cost about 100 basis points of first-quarter top-line growth, but normal operations resumed in April.
Horowitz framed the project as more than a one-quarter disruption. She said that the upgraded platform should support long-term channel and category expansion, new global partnerships, and faster use of data and insights.
In Q&A, management’s tone was notably more emphatic. Ball called the implementation firmly in the rearview mirror and said that it strengthens the foundation for newer channels and categories.
ANF Balances Tariffs, Freight & Spend
Margin commentary also drew close attention. The first-quarter operating margin was 8%, above management’s plan, helped by lower-than-expected tariff rates and favorable freight costs.
Ball said that the updated 2026 outlook assumes 20 basis points of tariff-related gross-margin pressure for the year, improved from 70 basis points in the March outlook. That relief is expected to be offset by higher freight costs and continued investment in marketing and stores.
Management’s message was that the model remains balanced. Modest AUR growth is helping fund brand investments, while share repurchases continue to absorb excess cash. The company bought back $105 million of stock in the quarter and expects at least $150 million more in the second quarter.
Abercrombie Stays on Offense
Horowitz closed the call by stressing that the company is still investing through volatility rather than retreating from it. She pointed to store openings, digital initiatives, new categories and brand collaborations as evidence that management is trying to extend growth rather than defend margins.
The broader posture coming out of the quarter was disciplined and forward-looking. ANF acknowledged regional disruption, but management consistently returned to healthy brands, controlled inventory and a playbook it believes can keep growth intact through 2026.
Zacks Signals for ANF
Abercrombie currently carries a Zacks Rank #3 (Hold), along with a Value Score of A, a Growth Score of B, a Momentum Score of D and a VGM Score of A. Under the Zacks framework, a #3 rank can still be held, and stronger Style Scores improve the stock’s profile, with A grades viewed more favorably than B grades.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The combination of a Value Score of A and a VGM Score of A points to attractive value and balanced style characteristics, though the Momentum Score of D is less supportive in the near term. As Zacks notes, the rank remains the first screen, and that rating can change as earnings estimate revisions adjust after the quarter.
Have you evaluated the performance of Abercrombie & Fitch's (ANF - Free Report) international operations for the quarter ending April 2026? Given the extensive global presence of this teen clothing retailer, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While delving into ANF's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $1.11 billion, marking an increase of 1.5% from the year-ago quarter. We will next turn our attention to dissecting ANF's international revenue to get a clearer picture of how significant its operations are outside its main base.
Unveiling Trends in ANF's International RevenuesEurope, Middle East and Africa accounted for 15% of the company's total revenue during the quarter, translating to $167.37 million. Revenues from this region represented a surprise of -12.93%, with Wall Street analysts collectively expecting $192.22 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $241.38 million (14.5%) and $185.04 million (16.9%) to the total revenue, respectively.
Asia Pacific generated $46.5 million in revenues for the company in the last quarter, constituting 4.2% of the total. This represented a surprise of +34.33% compared to the $34.62 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $44.48 million (2.7%), and in the year-ago quarter, it contributed $37.47 million (3.4%) to the total revenue.
Prospective Revenues in International MarketsIt is projected by analysts on Wall Street that Abercrombie will post revenues of $1.25 billion for the ongoing fiscal quarter, an increase of 3.2% from the year-ago quarter. The expected contributions from Europe, Middle East and Africa and Asia Pacific to this revenue are 16.7%, and 3%, translating into $208.25 million, and $37.88 million, respectively.
Analysts expect the company to report a total annual revenue of $5.47 billion for the full year, marking an increase of 3.9% compared to last year. The expected revenue contributions from Europe, Middle East and Africa and Asia Pacific are projected to be 15.6% ($854.69 million), and 2.9% ($159.61 million) of the total revenue, in that order.
In ConclusionRelying on international markets for revenues, Abercrombie faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
At the moment, Abercrombie has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
A Look at Abercrombie & Fitch's Recent Stock Price PerformanceOver the past month, the stock has seen a decline of 8.7% in its value, whereas the Zacks S&P 500 composite has posted an increase of 6.3%. The Zacks Retail-Wholesale sector, Abercrombie's industry group, has descended 1.8% over the identical span. In the past three months, there's been a decline of 9.2% in the company's stock price, against a rise of 10.5% in the S&P 500 index. The broader sector has increased by 3.6% during this interval.
Abercrombie & Fitch (ANF - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this teen clothing retailer have returned -2.7% over the past month versus the Zacks S&P 500 composite's +5.4% change. The Zacks Retail - Apparel and Shoes industry, to which Abercrombie belongs, has lost 0.8% over this period. Now the key question is: Where could the stock be headed in the near term?
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 RevisionsHere 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 $2.13 per share for the current quarter, representing a year-over-year change of -8.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -24.2%.
For the current fiscal year, the consensus earnings estimate of $10.61 points to a change of +7.6% from the prior year. Over the last 30 days, this estimate has changed -0.7%.
For the next fiscal year, the consensus earnings estimate of $11.64 indicates a change of +9.8% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
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 #3 (Hold) for Abercrombie.
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 $1.25 billion indicates a year-over-year change of +3.2%. For the current and next fiscal years, $5.47 billion and $5.71 billion estimates indicate +3.9% and +4.3% changes, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $1.47 for the same period compares with $1.59 a year ago.
Compared to the Zacks Consensus Estimate of $1.12 billion, the reported revenues represent a surprise of -0.48%. The EPS surprise was +16.67%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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.
ConclusionThe 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 #3 does suggest that it may perform in line with the broader market in the near term.
New store is the pinnacle expression of the brand, highlighting its New York heritage, while offering an expanded assortment of apparel and lifestyle product for today’s customer June 05, 2026 08:00 ET | Source: Abercrombie & Fitch Management Co.
NEW ALBANY, Ohio, June 05, 2026 (GLOBE NEWSWIRE) -- Today, Abercrombie & Fitch (“Abercrombie”), a division of Abercrombie & Fitch Co. (NYSE: ANF), announced the opening of its new SoHo store in New York City. Located at 520 Broadway between Spring and Broome Streets, the store reflects the brand’s 134-year-old history in New York, from its original South Street storefront in the 1890s to its past iconic Madison Avenue location, to its Fifth Avenue store today. The store also debuts Abercrombie & Fitch’s first “Heritage Meets Modern” design concept, blending archival storytelling and updated designs in a way that honors the brand’s heritage, while further establishing the retailer as an effortless and elevated American lifestyle brand.
“We are proud to open our doors in the heart of one of New York City’s most iconic shopping destinations, in a place that has been central to Abercrombie & Fitch’s history for more than a century,” said Abercrombie & Fitch Co. Managing Director, Americas, Melissa Worth. “New York has always been woven into our brand’s story, and we truly feel that this new store is the best expression of Abercrombie to date, blending our rich history with a modern design that we hope inspires every customer who walks through our doors.”
Spanning three floors, the store offers an expanded shopping experience featuring a broad assortment of men’s and women’s product, from Abercrombie’s signature denim and Office Approved collections to exclusive New York City and USA merchandise available only in select locations. The brand is also thrilled to spotlight a first-ever accessories section, inclusive of footwear, sunglasses, bags and more, offered to reflect how customers live and shop today.
“Today’s customer leads a multifaceted life, and we wanted our products to reflect that,” said Abercrombie & Fitch Co. Chief Product Officer, Corey Robinson. “With a curated assortment that extends beyond apparel, we’re able to meet our customers wherever life takes them, outfitting them from head to toe with pieces that bring confidence, versatility and comfort for every occasion.”
Curated archive displays throughout the entrance and stairway showcase apparel and memorabilia that connect the brand’s New York heritage to its modern-day evolution, including a 1911 “Saranac” cord suit and a rare “Rainbow Pond” jacket made exclusively for Abercrombie & Fitch by Willis & Geiger in the late 1960s. Heritage-inspired furnishings throughout the space also reflect the brand’s longstanding connection to sporting, travel and discovery, with additional custom millwork, mosaic tiling and fitting rooms with customizable lighting throughout.
The second floor also includes a dedicated activation space inspired by a classic New York hotel bar.
The new Abercrombie & Fitch store opens to the public on Friday, June 5, and will be open daily from 10:00 AM to 9:00 PM. As part of the opening weekend celebration, the brand is partnering with local SoHo creative studio, Abbode, for custom embroidery onsite. Later this month, Hollister, a division of Abercrombie & Fitch Co., will open a store at 547 Broadway in the former Abercrombie SoHo location, further expanding the retailer’s presence in the neighborhood.
About Abercrombie & Fitch
Abercrombie & Fitch is an effortless, elevated American lifestyle brand, blending heritage and modern style through quality apparel, accessories and fragrance crafted for all of life’s moments. Abercrombie & Fitch is the namesake brand of Abercrombie & Fitch Co. and is sold in more than 300 stores worldwide (including abercrombie kids) and on abercrombie.com globally.
Key Takeaways ANF's Americas sales rose 3% YoY, supported by growth across both brands.Positive traffic, stable conversion, higher AUR and units sold drove balanced regional growth.Store investments, digital upgrades and ERP-backed planning improved execution across channels. Abercrombie & Fitch Co. (ANF - Free Report) continues to find strength in its largest market, with the Americas region serving as a key driver of growth amid a challenging global retail environment. While geopolitical tensions and macroeconomic uncertainty weighed on results in certain international markets during the first quarter of fiscal 2026, the company's performance in the Americas remained resilient. Healthy consumer demand, effective merchandising and disciplined execution helped ANF extend its growth streak and reinforce confidence in its regional strategy.
The Americas business delivered another solid quarter, with sales increasing 3% year over year. Management highlighted growth across both brands, supported by positive traffic trends, stable conversion rates and gains in both average unit retail (AUR) and units sold. The region also benefited from strong product acceptance across key categories, allowing the company to maintain pricing discipline while generating balanced growth. Importantly, the Americas remained ANF's largest and most profitable market, helping offset weakness elsewhere.
The strength of the region reflects the success of ANF's omnichannel model and continued investments in stores, digital capabilities and customer engagement. Management noted that customer response remains healthy, supported by compelling assortments and disciplined inventory management. New store openings and remodels are also contributing to growth, while the company's enhanced merchandising and planning capabilities, supported by its newly implemented ERP platform, are improving execution across channels.
Looking ahead, the Americas market appears well positioned to remain a key growth engine for ANF. Although consumers continue to face inflationary pressures and broader economic uncertainty, the company is benefiting from strong brand relevance, positive traffic trends and a flexible operating model. As long as demand remains healthy and management continues to execute effectively, the Americas should provide a stable foundation for growth and help ANF navigate challenges in more volatile international markets.
ANF’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 12.7% in the past three months, underperforming the industry’s decline of 0.9% and the broader Retail-Wholesale sector’s rise of 0.9%.
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 6.87X, which is lower than the industry average of 14.88X and notably below the sector average of 23.04X. 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 ConsiderTapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR 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 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 carries a Zacks Rank of 2 (Buy).
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.
Urban Outfitters, Inc. (URBN - Free Report) offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2.
The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.5% and 9.7%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average.
