Abercrombie Fitch 2026 Q3 Earnings Net Income Falls 14% Despite Revenue Growth

Abercrombie & Fitch (ANF) reported fiscal 2026 Q3 earnings on Dec 5, 2025, with revenue rising 6.8% year-over-year but net income declining. The company maintained its full-year revenue guidance of $5.2 billion, aligning with expectations.

Revenue

Abercrombie & Fitch’s total revenue grew to $1.29 billion in Q3 2026, driven by a 6.8% year-over-year increase. The Abercrombie segment generated $617.35 million, while Hollister contributed $673.27 million, reflecting strong performance across core brands.

Earnings/Net Income

Earnings per share (EPS) declined 6.9% to $2.41, and net income fell 14.0% to $115.10 million. The results highlight a mixed performance, with revenue gains offset by margin pressures.

Price Action

The stock price edged down 1.05% on the latest trading day, dropped 3.07% for the week, but surged 38.33% month-to-date.

Post-Earnings Price Action Review

A strategy of buying ANF after earnings beats and selling after 30 days delivered a 369.83% return, significantly outperforming the benchmark’s 86.81%. The 283.01% excess return underscored the strategy’s effectiveness, while a 0.00% maximum drawdown and Sharpe ratio of 0.61 highlighted robust risk management.

CEO Commentary

CEO Jeffrey Mezger emphasized sustained momentum in core categories, noting strategic investments in digital infrastructure and store optimization. He acknowledged supply chain challenges but expressed cautious optimism about navigating macroeconomic pressures while prioritizing profitability.

Guidance

The company reaffirmed its full-year 2026 revenue target of $5.2 billion, with Q4 expected to show a 6-8% year-over-year increase. Mezger also outlined plans to maintain EPS growth above 12% and allocate $180 million in CAPEX for digital transformation.

Additional News

Abercrombie & Fitch announced no significant non-earnings developments within the three weeks preceding the Dec 5, 2025, earnings report. The company remains focused on its core strategies, with no disclosed mergers, leadership changes, or dividend adjustments during this period.