Abercrombie & Fitch Q2 2026 earnings beat on tariff refunds

Abercrombie & Fitch Q2 2026 earnings beat on tariff refunds

Wed, August 26, 2026 at 4:14 PM GMT+3 2 min read

• ANF +22.82%

Abercrombie & Fitch reported fiscal second-quarter results on Wednesday that exceeded its own guidance by a wide margin, driven by approximately $100 million in refunds of International Emergency Economic Powers Act tariffs, and raised its full-year earnings outlook.

The company posted net income of $4.17 per diluted share for the quarter ended August 1, compared with its prior guidance of $1.80 to $2.00 per diluted share. The tariff refunds, reflected as a reduction in cost of sales, added an estimated $1.75 per diluted share to the result. Net sales grew 5% to $1.27 billion, the company said, marking its 15th consecutive quarter of growth. Operating margin came in at 19.9%.

Growth was spread across the company's two brand families. The Abercrombie brands posted net sales of $596.8 million, up 8% from a year earlier. The Hollister brand generated $669.9 million in net sales, up 2%. By region, Americas net sales rose 5%, Asia-Pacific climbed 19%, and Europe, Middle East, and Africa gained 2%. Comparable sales were flat for the quarter.

For the full fiscal year, Abercrombie & Fitch now expects net income per diluted share in the range of $13.10 to $13.60, up from its previous guidance of $10.20 to $11.00. The company also raised its share repurchase target to at least $500 million from around $450 million. Net sales are expected to grow about 5% for the year, the company said. The updated full-year outlook reflects an estimated $120 million in total IEEPA tariff refunds, with approximately $20 million expected in the third quarter.

For the fiscal third quarter, Abercrombie & Fitch expects net income per diluted share of $2.90 to $3.20 and net sales growth of 5% to 6%.

Chief Executive Officer Fran Horowitz said in a statement: "We delivered record second quarter net sales and our 15th consecutive quarter of growth, reflecting our teams' continued focus on serving customers with compelling product, marketing, and experiences."

The company repurchased $177 million in stock during the quarter and $282 million year to date, representing a 7% reduction in shares outstanding from the start of the year. As of August 1, the company held $628 million in cash and equivalents and approximately $1.1 billion in total liquidity.

Abercrombie & Fitch stock rose 11% in premarket trading on Wednesday.