ABERCROMBIE & FITCH CO /DE/ has recently released its 10-Q report. The company operates as an omnichannel retailer across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific, selling apparel, personal care products, and accessories for men, women, and kids. Its brands include Abercrombie & Fitch, abercrombie kids, Your Personal Best, Hollister, and Gilly Hicks, with sales coming through stores, e-commerce, wholesale, franchise, and licensing arrangements.
In Item 2, management says its discussion and analysis is designed to help investors compare operating performance across periods by excluding certain items it believes may not reflect future operating outlook. The company highlights comparable sales as a key non-GAAP measure, defined as the year-over-year change in net sales from stores open at least one year, adjusted for foreign currency, plus digital net sales, while excluding revenue other than store and digital sales. Management says it uses this measure to separate growth from existing locations versus store openings or closures.
Abercrombie also presents financial information on a constant currency basis to remove the effect of foreign exchange movements. For the 13 weeks ended May 2, 2026, net sales were $1.114 billion under GAAP, up 2% from $1.097 billion a year earlier; on a constant currency basis, prior-year sales are adjusted to $1.108 billion, leaving the current period flat versus that adjusted base. Operating income was $88.8 million, down from $101.5 million, and constant currency operating income was $109.0 million versus $88.8 million, reflecting a 180-basis-point decline.
Net income per diluted share attributable to A&F was $1.47, compared with $1.59 a year earlier. On a constant currency basis, that figure was $1.47 versus $1.70 in the prior year period, after adjusting for foreign exchange effects. Management also uses EBITDA as a supplemental measure, defined as net income before interest, taxes, depreciation, and amortization.
For the quarter, net income was $68.1 million, or 6.1% of net sales, versus $81.7 million, or 7.4%, in the prior-year quarter. Income tax expense was $26.0 million, compared with $26.6 million, interest income was $5.3 million, and depreciation and amortization was $42.3 million. That produced EBITDA of $131.1 million, equal to 11.8% of net sales, down from $140.1 million, or 12.8%, a year earlier. The market has reacted to these announcements by moving the company's shares -2.99% to a price of $75.34. For more information, read the company's full 10-Q submission here.
