Abercrombie Fitch 2026 Q2 Earnings Beats Expectations, Net Income Up 5.9%

Abercrombie & Fitch reported strong Q2 results, beating expectations on both top and bottom lines. The company raised full-year guidance, reflecting confidence in sustained growth. CEO Fran Horowitz highlighted 11 consecutive quarters of performance, driven by brand strength and global expansion.

Revenue
Abercrombie & Fitch reported total revenue of $1.21 billion in Q2 2026, a 6.6% increase from the same period in 2025. The Abercrombie segment contributed $551.87 million, while the Hollister brand generated $656.69 million, reflecting the company’s diversified revenue streams. Both brands contributed to the overall growth, with Hollister showing particularly robust performance.

Earnings/Net Income
The company’s earnings per share (EPS) grew by 14.2% to $2.97 in Q2 2026, up from $2.60 in the prior year. Net income also increased, reaching $143.39 million, a 5.9% rise from $135.38 million in Q2 2025. The earnings performance underscores the company’s strengthening profitability.

Price Action
On the stock market, Abercrombie & Fitch’s shares edged up 0.59% on the latest trading day and gained 3.91% over the full trading week. However, the stock has declined 1.42% month-to-date, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review
The strategy of buying ANF after earnings outperformed the market with a 701.42% overall return and a Sharpe ratio of 0.87. The compound annual growth rate (CAGR) of 53.01% significantly exceeded the benchmark’s 79.85% return over the same period. The strategy’s maximum drawdown of 0.00% highlights its strong risk management capabilities, offering investors a compelling case for post-earnings engagement.

CEO Commentary
Fran Horowitz noted 11 consecutive quarters of growth, driven by Hollister’s 19% sales and comp growth. She acknowledged a 5% decline for the Abercrombie brand but pointed to improved inventory management and strong fall trend momentum, including Boho and Western styles. The CEO also highlighted momentum in new store openings, NFL collaborations, and digital engagement, while addressing tariffs through proven mitigation strategies.

Guidance
Abercrombie & Fitch raised full-year 2025 net sales guidance to 5%–7% growth from $4.95 billion in 2024. Q3 net sales are expected to increase 5%–7% to $1.2 billion. The company forecasts an operating margin of 13%–13.5% for the year and 11%–12% for Q3. Earnings per share are guided to $10–$10.50 for 2025 and $2.05–$2.25 for Q3, with a tax rate of 30%–31%. Capital expenditures are projected at $225 million, and the company plans $400 million in share repurchases for the year.

Additional News
In recent weeks, Abercrombie & Fitch announced a major fashion partnership with the Dallas Cowboys, reinforcing its brand presence in the sports sector. The company also solidified its connection with the NFL through a new fashion partnership and a collaboration with linebacker TJ Watt. On the philanthropy front, Abercrombie & Fitch pledged financial support to Nationwide Children’s Hospital for behavioral health initiatives. Additionally, Hollister supported emerging artists as the official presenting partner of Lollapalooza Aftershows, further expanding the brand’s cultural footprint.