Shares of Abercrombie & Fitch Co. skyrocketed Wednesday morning after the company reported that second-quarter sales and earnings surpassed Wall Street expectations and raised its outlook for the third quarter and 2026.
The positive outcome triggered a 37 percent lift in the stock price to $149.26 and marked the retailer’s 15th consecutive quarter of growth.
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For the three months ended Aug. 1, the Abercrombie brand led the results with an 8 percent sales increase and a 4 percent comp sales increase, while the Hollister brand was up 2 percent, though comparable sales were down 3 percent.
Second-quarter sales rose across all regions, with the Americas up 5 percent, Asia-Pacific up 19 percent, and Europe, Middle East and Africa up 2 percent. Overall, second-quarter sales rose 5 percent to $1.3 billion, from $1.2 billion in the year-ago quarter.
Operating income rose to $252.7 million, from $206.7 million in the year-ago period. Net income increased to $185.5 million, or $4.17 a diluted share, from $143.4 million, or $2.91 a diluted share, in the year-ago period.
“We’ve been on this journey for a long time and we’re super proud to continue this momentum,” Fran Horowitz, chief executive officer of Abercrombie & Fitch Co., told WWD. “It’s due to the work we have done with our team rebuilding this company and the foundation and operating model that we’ve created.”
Horowitz stressed that the results exceeded internal expectations and that the beat was achieved even without the impact of tariff refunds. A&F received about $100 million in tariff refunds, adding an estimated $1.75 per diluted share. An additional $20 million is expected in tariff refunds.
“We were off to a strong start to the season in August and the momentum has continued into the third quarter,” Horowitz said. “The customer is really voting for us. Product acceptance when it’s aligned with the right voice and experience is a winning formula for us.”
Going forward, “We’re starting to expand our channels. That’s really the next chapter for us. We got a little bit of a tease about that out there this quarter with our Target partnership and we just announced expanding our partnership with the NFL,” she said. Last June, a collection of Hollister bedding, decor, sleepwear and loungewear was launched at Target.
“What I see from the customer is they’re continuing to spend. When you offer them the right product, the right voice and experience, and a value equation of fashion at the right price, they are responding. They are loving the product, even the core basics.”
