Abercrombie & Fitch posted record second-quarter net sales of $1.27 billion, up 5% from $1.21 billion a year earlier, marking its 15th straight quarter of growth. Comparable sales were flat.
Operating income rose to $253 million from $207 million last year. Operating margin widened to 19.9% from 17.1%. Earnings per diluted share increased to $4.17 from $2.91.
Sales growth was broad-based by region: the Americas rose 5% to $1.02 billion, APAC climbed 19% to $44.2 million, and EMEA increased 2% to $202.0 million. By brand, Abercrombie sales grew 8% to $596.8 million, while Hollister sales rose 2% to $669.9 million.
The company said the quarter included about $100 million of IEEPA tariff refunds, which lifted operating income, operating margin and EPS.
On the balance sheet, cash and equivalents totaled $628 million at quarter-end, down from $760 million at the start of the fiscal year. Inventories were $592 million, compared with $601 million at the end of January. Liquidity was about $1.1 billion, down from $1.2 billion at the start of the year.
Abercrombie repurchased 2.0 million shares for about $177 million in the quarter. Year to date, it has bought back 3.2 million shares for $282 million, equal to 7% of shares outstanding at the beginning of the year.
For fiscal 2026, the company raised its net sales growth outlook to around 5% from a prior range of 3% to 5%. It now expects net income per diluted share of $13.10 to $13.60, up from its earlier forecast of $10.20 to $11.00. Share repurchases are now expected to reach at least $500 million, up from about $450 million.
For the third quarter, Abercrombie is guiding to sales growth of 5% to 6% and earnings per diluted share of $2.90 to $3.20. Following these announcements, the company's shares moved 31.89%, and are now trading at a price of $143.63. For the full picture, make sure to review ABERCROMBIE & FITCH CO /DE/'s 8-K report.
