Abercrombie & Fitch’s first quarter results were met with a positive market reaction, as management attributed the outcome to continued net sales growth in the Americas and APAC, despite notable headwinds in EMEA. CEO Fran Horowitz-Bonadies highlighted the company’s ability to maintain customer engagement across both Abercrombie and Hollister brands, and cited operational discipline in inventory and promotional activity as key contributors. The launch of a new merchandising ERP system and ongoing investment in marketing and digital initiatives also played significant roles in shaping the quarter’s performance.
Is now the time to buy ANF? Find out in our full research report (it’s free for active Edge members).
Abercrombie and Fitch (ANF) Q1 CY2026 Highlights:
- Revenue: $1.11 billion vs analyst estimates of $1.12 billion (1.5% year-on-year growth, 0.8% miss)
- EPS (GAAP): $1.47 vs analyst estimates of $1.27 (15.7% beat)
- Adjusted EBITDA: $131.1 million vs analyst estimates of $117.2 million (11.8% margin, 11.9% beat)
- Revenue Guidance for Q2 CY2026 is $1.24 billion at the midpoint, below analyst estimates of $1.25 billion
- EPS (GAAP) guidance for the full year is $10.60 at the midpoint, missing analyst estimates by 1.1%
- Operating Margin: 8%, down from 9.3% in the same quarter last year
- Locations: 834 at quarter end, up from 793 in the same quarter last year
- Same-Store Sales fell 1% year on year (4% in the same quarter last year)
- Market Capitalization: $3.42 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Abercrombie and Fitch’s Q1 Earnings Call
- Dana Telsey (Telsey Advisory Group) asked about the impact of Middle East events and ERP implementation. CEO Fran Horowitz-Bonadies responded that the Middle East reduced net sales growth by about 50 basis points and that the ERP upgrade is now complete, supporting future expansion.
- Corey Tarlowe (Jefferies) probed trends by month and promotional cadence. Horowitz-Bonadies confirmed promotions remained disciplined, with positive AUR growth, and said Hollister is expected to grow for the year, supported by strong categories like graphic tees and swim.
- Marni Shapiro (The Retail Tracker) questioned inventory agility and chase mode. Horowitz-Bonadies explained the company leverages global supply chain flexibility to respond quickly to trends, viewing “chase” purchases as often more effective than buying ahead.
- Jonathan Keypour (Goldman Sachs) asked about EMEA’s drag on Hollister and elevated promotions. CFO Robert Ball clarified that EMEA challenges are concentrated in Hollister and that promotional activity was consistent with plans, resulting in positive AUR.
- Tom Nikic (Needham) inquired about APAC strategy and Q2 margin dynamics. Ball stated the APAC review is ongoing, with a focus on capital-light growth models, and reiterated that Q2 margin pressure is mainly from tariffs and increased marketing investment.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of recovery and trend improvement in EMEA, especially whether inventory and promotional adjustments can stabilize performance; (2) continued sales momentum in the Americas and APAC, including the effectiveness of new store openings and digital initiatives; and (3) the impact of elevated tariffs and freight costs on margins. Progress on AI-driven operational enhancements and new brand collaborations will also be important indicators of execution.
Abercrombie and Fitch currently trades at $75.93, up from $74.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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