Abercrombie saw “record” Q1 net sales of $1.1bn, up 2% compared to the same period last year. This was also Abercrombie’s 14th consecutive quarter of growth.
Sales growth was led by the Americas, where sales increased 3% and APAC, which saw growth of 24%. These results were partially offset by a 10% decline in sales in EMEA, which the brand attributed to the ongoing conflict in the Middle East.
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The company saw an operating margin of 8.0%, with diluted earnings per share of $1.47, which exceeds the outlook range.
Operating income decreased to $89m compared to last year, when it reached $102m.
“We delivered record first-quarter net sales and our 14th consecutive quarter of growth, reflecting our teams’ consistent execution for our customers amid a dynamic global environment. Results were driven by continued growth in the Americas, led by Abercrombie Brands, along with strong growth in APAC,” Fran Horowitz, chief executive officer at the company, explained.
“In EMEA, demand softened as the Middle East conflict ramped up, particularly impacting Hollister Brands, and we are proactively managing inventory and marketing to support the region.
“Our bottom-line results reflect discipline and consistency, with both operating margin and earnings per diluted share exceeding our outlook. We continued to invest in stores and marketing to strengthen our brands and customer experiences, while also returning $105m to shareholders through share repurchases, supported by our strong balance sheet.”
The group’s Abercrombie brand saw growth of 3%, while its Hollister brand was flat.
What next for Abercrombie?
Abercrombie expects net sales to grow between 3% and 5% for FY 2026 and to see Q2 net sales grow between 2% and 4%. It expects net income per diluted share between $1.80 and $2.00 and at least $150m in share repurchases.
Horowitz added: “On our first-quarter progress, we are maintaining our full-year sales and operating margin outlook. With our customer at the centre of everything we do and a strong foundation in place, we remain on offence across product and marketing and are confident in our path to deliver full-year net sales growth across brands, double-digit operating margins, strong cash flow and earnings per share growth to create long-term value for shareholders.”
The update follows shortly after Abercrombie reported increased costs for the full year ending 31 January 2026, which caused profits to fall despite increased sales.
