The company’s quarter, which ended 1 August 2026 marked its 15th consecutive quarter of net sales growth, with record sales of $1.27bn, up 5% from the same period a year earlier.
During the quarter, sales increased across all regions, with the Americas reporting 5% growth, Asia-Pacific rising by 19%, and Europe, the Middle East and Africa advancing 2%.
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Abercrombie brands led overall performance with an 8% increase in net sales, while Hollister recorded a 2% rise. Both brands achieved their highest second quarter sales to date.
Abercrombie & Fitch chief executive officer Fran Horowitz said: “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. Growth was balanced across our brands and regions, highlighted by accelerating momentum in the Americas and improving trends in EMEA.”
Second Quarter Fiscal 2026 Highlights
Abercrombie & Fitch’s operating income rose to $253m in Q2 FY26, a significant increase compared to $207m on a reported basis last year.
The company attributed part of this improvement to the IEEPA tariff refunds, which reduced cost of sales and contributed to a higher operating margin of 19.9%, up from 17.1% a year earlier on a reported basis.
Its reported net income per diluted share rose to $4.17, compared to $2.91 in the prior year.
Both operating margin and earnings per share exceeded its outlook even before factoring in the one-off benefit from the tariff refunds.
Outlook for Third Quarter and Fiscal 2026
Abercrombie & Fitch raised its full-year 2026 guidance, now expecting net sales growth of around 5%, up from the previous range of 3% to 5%.
Operating margin is now projected between 14.5% and 15%, compared to the earlier estimate of 12% to 12.5%.
The company also upgraded its forecast for net income per diluted share to a range of $13.10 to $13.60, up from $10.20 to $11.00.
For the third quarter of fiscal 2026, Abercrombie & Fitch expects net sales growth in the range of 5% to 6%.
The retailer is projecting an operating margin between 13.0% and 14.0%, with the impact of IEEPA tariff refunds anticipated to contribute approximately 160 basis points.
Net income per diluted share is expected to fall between $2.90 and $3.20.
Fran Horowitz said: “After a strong start to the year, we are updating our full-year sales and operating margin outlook and remain confident in our long-term growth path and investment priorities. Importantly, we are adding incremental growth levers across partnerships, distribution channels and product categories.
“For the year, we expect to grow sales and earnings per share, underpinned by double-digit operating margins, while delivering strong cash flow and returns of cash to shareholders through at least $500 million of share repurchases. We are so excited about the foundation we’ve built and the significant growth opportunities ahead to strengthen our brands and create long-term shareholder value.”
