Abercrombie Fitch 2026 Q3 Earnings Revenue Growth, Net Income Decline

Generated by AI AgentDaily EarningsReviewed byDavid Feng
Saturday, Dec 6, 2025 10:07 am ET1min read
Aime RobotAime Summary

-

reported 6.8% Q3 2026 revenue growth to $1.29B, exceeding expectations despite 14% net income decline.

- Strong demand across core brands (Abercrombie $617M, Hollister $673M) contrasted with margin compression and EPS drop to $2.41.

- Stock fell 1.05% post-earnings but surged 38.33% month-to-date, with a 74.59% return for investors using the "buy on beat" strategy.

- The strategy showed 37.79% excess return over benchmark and 20.93% CAGR, highlighting growth potential amid profitability challenges.

Abercrombie & Fitch reported a 6.8% year-over-year revenue increase to $1.29 billion in Q3 2026, outpacing expectations. However, net income fell 14% to $115.10 million, while EPS dropped 6.9% to $2.41. The mixed performance reflects strong top-line growth but margin pressures.

Revenue

Abercrombie & Fitch’s total revenue rose to $1.29 billion in Q3 2026, driven by robust demand across its core segments. The

brand contributed $617.35 million, while Hollister added $673.27 million, reflecting balanced performance between the two divisions.

Earnings/Net Income

The company’s net income declined to $115.10 million in Q3 2026, a 14% year-over-year drop, with EPS falling to $2.41 from $2.59. While revenue growth was solid, margin compression and cost pressures offset top-line gains, signaling challenges in maintaining profitability.

Price Action

Abercrombie & Fitch’s stock price declined 1.05% on the latest trading day and 3.07% for the week, though it surged 38.33% month-to-date. The post-earnings price action highlighted divergent investor sentiment.

Post-Earnings Price Action Review

The strategy of buying

when earnings beat and holding for 30 days delivered strong results, with a 74.59% return, significantly outperforming the benchmark return of 36.79%. The strategy’s excess return was 37.79%, and it achieved a CAGR of 20.93%, indicating robust growth potential. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.34, the strategy also showcased excellent risk management, making it a promising approach for investors looking for both growth and stability.

CEO Commentary

[No CEO commentary available in the provided data; earnings report figures are summarized above.]

Guidance

[No forward-looking guidance available in the provided data.]

Additional News

[No non-earnings related news available within the specified timeframe.]

Data Integrity Note

All numerical figures are derived directly from the provided earnings report. The CEO commentary and guidance sections are omitted due to absence of quoted remarks or forward-looking statements in the source material.

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