Abercrombie & Fitch Scores Big in Q2 2026 with Record Sales and Strong Earnings
Abercrombie & Fitch has delivered another impressive quarter, reporting record second-quarter net sales of $1.27 billion and growing 5% from last year.
According to the company's recent conference call transcript, this marks their 15th consecutive quarter of top-line growth on record second-quarter net sales. Sales growth was above the expectation set in May and was balanced across regions and brands, with both Abercrombie and Hollister brands achieving record second-quarter net sales.
The company benefited from $100 million in tariff refunds in the quarter but still managed to beat their outlook by more than that on both operating margin and earnings per share. Year-to-date, they have repurchased approximately 7% of shares outstanding at the beginning of the year.
Abercrombie & Fitch is making meaningful progress across key strategic priorities, which they believe will further strengthen their foundation and set them up for long-term success. The company continues to leverage its strong cash flow and balance sheet, returning $177 million to shareholders in the quarter through their tenth consecutive quarter of share repurchases.
The Americas grew 5% in the quarter, with growth across direct channels. EMEA saw a return to net sales growth of 2%, while APAC business remains strong, growing 19% on comparable sales growth of 13%. Both brands achieved record second-quarter net sales, led by Abercrombie's brand growth of 8%, an acceleration from 3% in Q1.
The Abercrombie brand is experiencing a resurgence, driven by improvements in conversion and AUR (Average Unit Retail), particularly in the Americas. Growth was balanced by gender and category, with knits and wovens contributing alongside a solid bottoms business across pants and shorts.
Outside of strong financial results, it was an exciting quarter for the Abercrombie & Fitch brand. The company is leaning into its New York roots, bringing authenticity to life in their new SoHo store. They are also continuing to build on their connection to sport, serving fans of all 32 NFL teams with styles across several categories.
With a strong start to August and an updated full-year net sales outlook at the high end of their prior range, Abercrombie & Fitch is set up for another year of consistent, profitable growth in 2026. The company's commitment to strategic priorities and its ability to drive growth across regions will undoubtedly contribute to this success.
Abercrombie & Fitch has made it clear that they are focused on delivering long-term success while driving short-term results. With their renewed focus on brand heritage, connection to sport, and strategic priorities, the company is poised for continued growth and innovation in the years to come.
