Abercrombie & Fitch (ANF) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 net sales of $1.11 billion, up 2% year-over-year, marking the 14th consecutive quarter of growth, driven by Americas (+3%) and APAC (+24%), offset by a 10% decline in EMEA.

• Operating margin was 8.0%, exceeding outlook but down from 9.3% last year; diluted EPS was $1.47, above expectations but down from $1.59.

• Growth supported by strategic investments in marketing, digital, and stores, and successful ERP upgrade enhancing operational agility.

• Abercrombie brands grew 3%, Hollister brands were flat; comparable sales declined 1% year-over-year.

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

Financial highlights

• Net sales grew 2% year-over-year to $1.11 billion; Americas up 3%, APAC up 24%, EMEA down 10%.

• Operating income was $89 million (8.0% margin), down from $102 million (9.3%) last year, mainly due to higher marketing and ERP costs.

• EBITDA for Q1 was $131 million (11.8% of net sales), down from $140 million (12.8%) last year.

• Cash and equivalents at quarter-end were $594 million; total liquidity approximately $1.0 billion.

• Inventory at cost down 2% year-over-year to $533 million.

Outlook and guidance

• Full-year net sales growth expected at 3%-5%; operating margin guidance at 12%-12.5%; EPS expected between $10.20-$11.00.

• 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; $10 million in incremental tariff costs for fiscal 2026.

• Share repurchases for the year anticipated at around $450 million; capex projected at $225 million.

• Plans for ~30 net store openings and 80 remodels/right-sizings in fiscal 2026.