Abercrombie & Fitch reported record second quarter net sales of $1.3 billion, representing 5% year-over-year growth and the company's 15th consecutive quarter of expansion. While comparable sales were flat, the company achieved record sales across both its Abercrombie and Hollister brands. The bottom line was significantly bolstered by approximately $100 million in one-time pre-tax tariff refunds.

Key Highlights

  • Net sales reached a record $1.3 billion, beating estimates and driven by an 8% increase in Abercrombie brands and a 2% increase in Hollister.
  • Diluted EPS of $4.17 included a $1.75 per share benefit from IEEPA tariff refunds; excluding this, underlying performance remained above previous guidance.
  • Operating margin expanded to 19.9% for the quarter, including a 790-basis point benefit from the tariff refunds.
  • Full-year fiscal 2026 guidance was raised to net sales growth of approximately 5% (up from 3-5%) and diluted EPS to a range of $13.10 to $13.60.