ABERCROMBIE & FITCH CO /DE/ has recently released its 10-Q report. Abercrombie & Fitch Co., through its subsidiaries, operates an omnichannel retail business across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It sells apparel, personal care products, and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, Your Personal Best, Hollister, and Gilly Hicks brands, through stores, wholesale, franchise and licensing arrangements, and e-commerce. The company was founded in 1892 and is headquartered in New Albany, Ohio.
In Item 2, management says its discussion and analysis is intended to help investors evaluate operating performance by separating out items it believes may not reflect future results, and it uses non-GAAP measures to compare periods and assess performance. The company defines comparable sales as the year-over-year change in sales from stores open at least one year, with square footage changes limited to no more than 20%, plus digital net sales, with prior-year foreign-currency effects removed. Comparable sales excludes revenue other than store and digital sales, and management says the metric helps show how much of revenue growth comes from existing locations versus store openings and closings.
For the 13 weeks ended August 1, 2026, net sales were $1.267 billion, up 5% from $1.209 billion a year earlier; for the 26 weeks, net sales were $2.381 billion, up 3% from $2.306 billion. On a constant-currency basis, the 13-week and 26-week sales figures were unchanged at $1.267 billion and $2.381 billion, while the prior-year figures moved to $1.208 billion and $2.317 billion after currency adjustment.
Operating income rose to $252.7 million in the 13-week period from $206.7 million, with the reported operating margin improving to 20.0% from 17.1%. For the 26 weeks, operating income increased to $341.5 million from $308.2 million, with margin moving to 14.3% from 13.4%. Management’s adjusted non-GAAP operating income for the prior-year 13-week period was $168.1 million after excluding a $38.6 million litigation settlement, and $269.6 million for the prior-year 26-week period after the same adjustment; the current-year periods had no excluded items.
Net income attributable to A&F was $185.5 million, or $4.17 per diluted share, in the 13 weeks ended August 1, 2026, versus $143.4 million, or $2.91 per share, a year earlier. For the 26 weeks, net income was $253.7 million, or $5.59 per share, compared with $225.1 million, or $4.47 per share. Excluding the prior-year litigation settlement, adjusted non-GAAP diluted EPS was $2.32 for the 13-week period and $3.90 for the 26-week period; on a constant-currency basis, those figures were $2.33 and $4.02.
EBITDA for the 13 weeks was $296.0 million, equal to 23.4% of net sales, up from $244.1 million and 20.2% a year earlier. Adjusted EBITDA was also $296.0 million in the current quarter, compared with $205.5 million in the prior-year quarter after excluding the litigation settlement. For the 26 weeks, EBITDA was $427.1 million, or 17.9% of sales, versus $384.2 million, or 16.7%, and adjusted EBITDA was $427.1 million versus $345.6 million. The market has reacted to these announcements by moving the company's shares 4.27% to a price of $149.67. For more information, read the company's full 10-Q submission here.
