Abercrombie & Fitch Co. (NYSE:ANF) stock moved higher in Wednesday premarket trading after the retailer reported second-quarter results that beat estimates and raised its full-year outlook.
Quarterly Results Beat Estimates
Abercrombie reported earnings of $4.17 per diluted share, beating the analyst consensus estimate of $1.99. Adjusted earnings rose from $2.32 per share a year earlier.
Results included about $100 million in refunds tied to tariffs imposed under the International Emergency Economic Powers Act. The benefit added an estimated $1.75 per diluted share to earnings.
Net sales increased 5% to $1.267 billion from $1.209 billion. That topped the $1.248 billion estimate and marked the company’s 15th consecutive quarter of sales growth. Comparable sales were flat.
Brands And Regions Deliver Growth
Abercrombie brands grew 8%, while Hollister sales rose 2%. Both posted their best-ever second-quarter sales.
Sales increased 5% in the Americas, 19% in the Asia-Pacific region and 2% in Europe, the Middle East and Africa.
Operating income climbed to $252.7 million from $206.7 million. The operating margin expanded to 19.9% from 17.1%.
CEO Fran Horowitz said record second-quarter sales and a 15th consecutive quarter of growth reflected strength across the company’s brands and regions.
She highlighted faster growth in the Americas, improving trends in Europe, the Middle East and Africa, and an 8% sales increase for Abercrombie brands.
Horowitz said operating margin and earnings exceeded the company’s outlook beyond the tariff-refund benefit. She added that Abercrombie continues to invest in stores, digital capabilities, technology and marketing while returning cash to shareholders.
The company expects higher annual sales and earnings, double-digit operating margins, strong cash flow and at least $500 million in share repurchases.
Fiscal 2026 Outlook Rises
Abercrombie raised its fiscal 2026 earnings forecast to $13.10 to $13.60 per share from $10.20 to $11. Analysts expect $10.71.
The company now expects net sales of about $5.529 billion, above its previous range of $5.424 billion to $5.529 billion and the $5.464 billion estimate.
For the third quarter, Abercrombie forecast earnings of $2.90 to $3.20 per share and sales of $1.355 billion to $1.367 billion. Analysts expect $2.84 per share on sales of $1.345 billion.
Cash And Share Repurchases
Abercrombie generated $313 million in operating cash flow during the first half. It repurchased $177 million in stock during the quarter and $282 million year to date, reducing shares outstanding by 7% from the start of the year.
Cash and equivalents stood at $628 million as of Aug. 1, down from $760 million on Jan. 31. The company increased its annual share-repurchase plan to at least $500 million.
ANF Price Action: Abercrombie & Fitch shares were up 11.43% at $121.35 during premarket trading on Wednesday, according to Benzinga Pro data.
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