Abercrombie & Fitch (ANF) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 net sales of $1.1 billion, up 2% year-over-year, marking the 14th consecutive quarter of growth, with operating margin at 8% and EPS of $1.47, both exceeding expectations.

• Growth was driven by strong performance in the Americas (+3%) and APAC (+24%), offset by a 10% decline in EMEA due to Middle East conflict.

• Strategic investments in marketing, digital, and stores, along with a completed ERP upgrade, supported profitable growth and operational agility.

• $105 million in share repurchases completed, reducing shares outstanding by 3%.

• Abercrombie brands grew 3%, Hollister brands were flat; balanced gender growth noted.

Financial highlights

• Net sales grew 2% year-over-year to $1.1 billion; Americas up 3%, APAC up 24%, EMEA down 10%.

• Operating income was $89 million (8% margin), down from $102 million (9.3%) last year; adjusted EBITDA margin at 12%.

• EPS was $1.47, above guidance but down from $1.59 last year.

• Inventory at cost down 2% year-over-year to $533 million; cash and equivalents at $594 million.

• Returned $105 million to shareholders via share repurchases (3% of shares outstanding).

Outlook and guidance

• Full-year net sales growth expected at 3%-5% over $5.27 billion in 2025; operating margin guidance unchanged at 12%-12.5%; EPS expected between $10.20-$11.

• Q2 net sales expected to grow 2%-4% year-over-year; operating margin around 10%; EPS $1.80-$2.00.

• Tariff impacts expected to be unfavorable by 20 bps for the year and 120 bps for Q2; full-year gross margin pressure reduced to 20 bps.

• $450 million in share repurchases targeted for 2026; capex around $225 million.

• Planned ~30 net store openings, 50 openings, 20 closures, and 80 remodels/right-sizes for the year.