Abercrombie & Fitch (ANF) investor relations material

Executive summary

• Achieved record Q2 net sales of $1.27 billion, up 5% year-over-year, marking the 15th consecutive quarter of growth across both Abercrombie and Hollister brands and all regions.

• Operating margin reached 19.9%-20%, significantly above outlook, aided by a $100 million IEEPA tariff refund.

• Net income per diluted share was $4.17, exceeding guidance, with adjusted EPS of $4.17 versus $2.32 last year.

• Returned $177 million to shareholders in Q2 via share repurchases, totaling 7% of shares repurchased year-to-date.

• Growth was broad-based: Americas up 5%, APAC up 19%, EMEA up 2%; Abercrombie brands up 8%, Hollister up 2%.

Financial highlights

• Q2 net sales: $1.27 billion (+5% year-over-year); Americas +5%, APAC +19%, EMEA +2%.

• Q2 operating income: $253 million (includes $100 million IEEPA tariff refund), up from $207 million last year.

• Net income attributable to shareholders: $184 million, up from $141 million last year.

• Diluted EPS: $4.17 (vs. $2.32 adjusted last year), including $1.75 benefit from tariff refund.

• Inventory at cost flat year-over-year at $592 million; units up low single digits, aligned with sales growth.

Outlook and guidance

• Full-year net sales growth expected around 5%; operating margin 14.5%-15.0% (up from 12.0%-12.5% prior outlook).

• Full-year diluted EPS guidance raised to $13.10-$13.60 (from $10.20-$11.00), including $2.10 from tariff refunds.

• Q3 net sales growth expected at 5%-6% year-over-year; operating margin 13%-14% (including $20 million tariff refund).

• At least $500 million in share repurchases planned for 2026; capital expenditures expected at $250 million.

• IEEPA tariff refunds expected to benefit full-year EPS by $2.10.