Abercrombie & Fitch (ANF) Q2 2027 earnings summary

Executive summary

• Achieved record Q2 2026 net sales of $1.27 billion, up 5% year-over-year, marking the 15th consecutive quarter of growth across all brands and 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, up from $2.32 adjusted last year, with EPS and margins exceeding guidance.

• Returned $282 million to shareholders year-to-date via share repurchases, reducing shares outstanding by 7%.

• Strategic priorities advanced: sales growth, gross margin stabilization, tech investments, and strong profitability with cash returns.

Financial highlights

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

• Q2 operating income: $252.7-$253 million; operating margin: 19.9% (up from 13.9% adjusted last year).

• Net income attributable to shareholders: $183.7-$184 million; diluted EPS: $4.17 (includes $1.75 benefit from tariff refund).

• EBITDA for Q2 2026 was $296 million (23.4% margin), up from $244.1 million (20.2%) in Q2 2025.

• 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%, with growth across all regions and brands.

• Full-year operating margin forecasted at 14.5%-15%, including 220 bps benefit from tariff refunds.

• Full-year EPS guidance: $13.10-$13.60, 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.