Abercrombie & Fitch ($ANF) beat first-quarter profit estimates on May 27, 2026 even as the Middle East conflict cut EMEA sales 10%, and the stock closed up 8.9% that day, not the 13% this page first reported. The bigger story came three months later. Second-quarter results on August 26, 2026, boosted by about $100 million in tariff refunds, sent the shares up 35.7% in one session. At the October 16, 2026 close of $153.26, $ANF has more than doubled from its pre-Q1 close.
One note on calendars first. Abercrombie's fiscal year does not match the calendar year. Fiscal 2025 ended January 31, 2026, so "Q1 fiscal 2026" means the quarter ended May 2, 2026, and "Q2 fiscal 2026" means the quarter ended August 1, 2026.
The Q1 print: a profit beat, a soft top line
Per the company's Q1 fiscal 2026 release, net sales rose 2% to a first-quarter record of $1.114 billion, the 14th straight quarter of growth. Comparable sales fell 1%. Diluted EPS was $1.47, down from $1.59 a year earlier, and operating margin slipped to 8.0% from 9.3%.
Against Wall Street, it was mixed. CNBC, citing LSEG, had EPS at $1.47 against $1.28 expected, a 14.8% beat, while revenue of $1.11 billion fell just short of the $1.12 billion estimate.
| Q1 FY2026 (ended May 2, 2026) | Net sales | Change | Comp sales |
|---|---|---|---|
| Americas | $899.9M | +3% | +1% |
| EMEA | $167.4M | -10% | -11% |
| APAC | $46.5M | +24% | +15% |
| Abercrombie brands | $564.7M | +3% | 0% |
| Hollister brands | $549.1M | flat | -2% |
The "geopolitical" angle is real and specific. CEO Fran Horowitz said in the release: "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." CNBC reported that CFO Robert Ball told analysts the EMEA slowdown cut first-quarter total sales growth by more than half a percentage point against the company's own outlook. EMEA was about 15% of Q1 sales ($167.4 million of $1,113.8 million).
Guidance was the catch. The full-year outlook held at 3% to 5% sales growth and EPS of $10.20 to $11.00, but the Q2 EPS range of $1.80 to $2.00 sat well below the $2.54 LSEG consensus that CNBC cited. The company also cut its fiscal 2026 tariff drag estimate to about 20 basis points from about 70, and said it had applied for roughly $100 million in IEEPA tariff refunds that were not in the outlook. It bought back $105 million of stock in the quarter.
What has happened since: the Q2 refund quarter
That $100 million showed up in Q2. Per the Q2 fiscal 2026 release of August 26, 2026, net sales rose 5% to $1.267 billion with comparable sales flat. Abercrombie brands grew 8% (comps +4%), Hollister grew 2% (comps -3%), and EMEA turned positive at +2% even with comps down 4%. Operating income was $253 million, a 19.9% margin, and diluted EPS was $4.17.
Strip out the refunds and the quarter still cleared the bar. The company put the refund benefit at $1.75 per share, so EPS was $2.42 without it (arithmetic: $4.17 - $1.75). That beat the company's own $1.80 to $2.00 range and was about 22% above the $1.99 analyst estimate reported by Reuters (arithmetic: $2.42 / $1.99 - 1). Reuters, citing LSEG, had revenue at $1.27 billion against $1.25 billion expected.
Guidance moved up sharply. Fiscal 2026 now calls for about 5% sales growth, a 14.5% to 15.0% operating margin, EPS of $13.10 to $13.60 and at least $500 million in buybacks. That EPS range includes an estimated $2.10 per share from tariff refunds and interest, so the ex-refund range is about $11.00 to $11.50 (arithmetic: $13.10 - $2.10 and $13.60 - $2.10). Even without refunds, that sits at or above the top of the May range. Q3 guidance is 5% to 6% sales growth and EPS of $2.90 to $3.20, which includes about $0.35 of refund benefit.
The math: $ANF from the Q1 print to October 16
| Date (2026) | $ANF close | Move |
|---|---|---|
| May 26 (pre-Q1) | $74.78 | baseline |
| May 27 (Q1 day) | $81.42 | +8.9% on the day |
| Aug 25 (pre-Q2) | $108.90 | +33.8% since May 27 |
| Aug 26 (Q2 day) | $147.75 | +35.7% on the day |
| Oct 16 | $153.26 | +104.9% since May 26 |
The May 27 gain was ($81.42 / $74.78) - 1 = 8.9%. CNBC put the intraday gain at about 12% in afternoon trading, and the original version of this article said 13%. The close was lower. The August 26 jump was ($147.75 / $108.90) - 1 = 35.7%, on volume of 17.2 million shares versus 2.2 million the day before. From the May 26 close to the October 16 close the stock gained 104.9%, while the S&P 500 rose 1.9% (7,519.11 to 7,659.44). The $153.26 close on October 16 was the highest in the May 1 to October 16 window.
On valuation, $153.26 is about 11.5 times the $13.35 midpoint of fiscal 2026 EPS guidance, and about 13.6 times the $11.25 ex-refund midpoint. Refund income is one-off by nature: about $120 million for the full year, of which $20 million is expected in Q3. For more on retail earnings this cycle, see our coverage of Macy's Q2 surprise and Walmart's earnings miss.
What to watch
- Q3 delivery: 5% to 6% sales growth and EPS of $2.90 to $3.20, of which about $0.35 is refund-driven.
- EMEA: it went from -10% in Q1 to +2% in Q2, but comps were still -4%.
- Hollister: Q2 comps were -3%, against +4% at Abercrombie brands.
- Tariff rate assumption: the outlook now assumes an effective 10% to 12.5% rate for the rest of fiscal 2026, down from 15%.
- Buybacks: $282 million was repurchased through August 1 against a full-year floor of $500 million, with $568 million left on the authorization.
- Holiday demand: Q4 is the biggest quarter, so consumer data matters. See our holiday-season preview.
More earnings breakdowns are on the Traders On Trend homepage.
Bull/Bear Verdict
Bull Case: Without the tariff refunds, Q2 EPS of $2.42 still beat the $1.99 estimate, Abercrombie brands comped +4%, EMEA returned to growth, and ex-refund fiscal 2026 guidance of about $11.00 to $11.50 sits above the May range, with at least $500 million in buybacks on top.
Bear Case: About $2.10 of the $13.10 to $13.60 EPS guide comes from one-time refunds, Hollister and EMEA comps were still negative in Q2, and the stock has already rerated 104.9% since May 26 while the S&P 500 rose 1.9%.
FAQ
Did Abercrombie & Fitch beat Q1 fiscal 2026 estimates?
On earnings, yes. EPS was $1.47 against $1.28 expected (LSEG via CNBC). Revenue of $1.11 billion came in just under the $1.12 billion estimate.
How much did $ANF stock rise after the May 27, 2026 report?
It closed at $81.42, up 8.9% from $74.78 on May 26. It traded up about 12% intraday, per CNBC.
Why did EMEA sales fall in Q1?
The company said demand softened as the Middle East conflict ramped up, hitting Hollister hardest. EMEA sales fell 10%, with comps down 11%.
How much of the Q2 beat came from tariff refunds?
About $100 million pre-tax, or $1.75 per share, came from IEEPA tariff refunds. Without it, Q2 EPS was $2.42, still above the $1.80 to $2.00 guidance.
Updated October 19, 2026: expanded with Q1 and Q2 fiscal 2026 figures from Abercrombie's own releases, LSEG consensus comparisons, Q3 and full-year guidance, and price data through the October 16, 2026 close. Corrected: the stock closed up 8.9% on May 27, not 13%.