Abercrombie & Fitch opened 2026 with another quarter of growth, reporting record Q1 net sales even as demand weakened in Europe, the Middle East and Africa, where trading was affected by escalation in the Middle East. The retailer said first-quarter net sales reached $1.1 billion, a 2% increase on the same period last year, extending its growth streak to 14 consecutive quarters.
Performance was strongest in the Americas, where sales rose 3%, and in the Asia-Pacific region, where sales climbed 24%. Those gains more than offset a 10% decline in EMEA revenue, which the company linked to softer demand conditions as the regional conflict intensified, with the impact felt most acutely in its Hollister business.
Profitability metrics were mixed. The company posted an operating margin of 8.0% and delivered diluted earnings per share of $1.47, ahead of its guidance range. Operating income, however, fell to $89 million from $102 million a year earlier, reflecting cost pressures and the impact of regional sales mix.
Chief executive officer Fran Horowitz said the quarter demonstrated consistent execution despite a volatile global backdrop. “We delivered record first-quarter net sales and our 14th consecutive quarter of growth, reflecting our teams’ consistent execution for our customers amid a dynamic global environment. Results were driven by continued growth in the Americas, led by Abercrombie Brands, along with strong growth in APAC,” she said.
She added that the company is taking a more cautious operational stance in EMEA. “In EMEA, demand softened as the Middle East conflict ramped up, particularly impacting Hollister Brands, and we are proactively managing inventory and marketing to support the region.
“Our bottom-line results reflect discipline and consistency, with both operating margin and earnings per diluted share exceeding our outlook. We continued to invest in stores and marketing to strengthen our brands and customer experiences, while also returning $105m to shareholders through share repurchases, supported by our strong balance sheet.”
By brand, the Abercrombie label delivered 3% growth, while Hollister was flat overall, reflecting stronger performance in some regions and a more challenging environment in EMEA. The quarter’s record Q1 net sales highlight the company’s continued momentum in the Americas and APAC, even as it navigates uneven demand and geopolitical disruption in other markets.
Outlook: steady full-year expectations, Q2 growth forecast
For fiscal 2026, Abercrombie reiterated an expectation for net sales growth of 3% to 5%. The company’s second-quarter outlook calls for net sales growth of 2% to 4%, with net income per diluted share projected between $1.80 and $2.00. It also plans at least $150 million in share repurchases over the year.
Horowitz said the company is holding its broader outlook while staying aggressive on product and marketing. “On our first-quarter progress, we are maintaining our full-year sales and operating margin outlook. With our customer at the centre of everything we do and a strong foundation in place, we remain on offence across product and marketing and are confident in our path to deliver full-year net sales growth across brands, double-digit operating margins, strong cash flow and earnings per share growth to create long-term value for shareholders.”
