Abercrombie & Fitch (ANF) Q4 2026 earnings summary

Executive summary

• Achieved record net sales of $5.27B in FY 2025, up 6% year-over-year, with 13 consecutive quarters of net sales growth and double-digit operating margins for the third consecutive year.

• Both Abercrombie and Hollister brands delivered record Q4 net sales; Hollister posted its eleventh consecutive quarter of growth and full-year sales up 15%, while Abercrombie brand declined 1%.

• Continued investments in marketing, stores, people, and digital capabilities to strengthen the business.

• Operating model and disciplined capital allocation enabled strong shareholder returns, including $450 million in share repurchases (11% of shares outstanding).

• Entered 2026 with a strong foundation, aiming for continued global growth, margin stability, and further investments in stores, digital, and technology.

Financial highlights

• Q4 net sales grew 5% year-over-year to $1.67B; comparable sales up 1%.

• Q4 operating margin was 14.1%, with EPS of $3.68.

• Full-year net sales reached $5.27B, up 6% year-over-year; operating margin was 13.3% GAAP, 12.5% adjusted.

• Full-year EPS was $10.46 (GAAP) and $9.86 (adjusted); operating income was $699M (13.3% margin), adjusted operating income $661M (12.5% margin).

• Operating cash flow for the year was $619M; free cash flow $378M; cash and equivalents at year-end were $760M, with total liquidity of $1.2B.

Outlook and guidance

• FY 2026 net sales growth expected at 3%-5%, with growth across brands and regions.

• Full-year operating margin guidance is 12%-12.5%, reflecting incremental tariff expense of $40M and 70 bps margin impact.

• EPS expected in the range of $10.20-$11.00; share repurchases targeted at $450M.

• Q1 2026 net sales growth expected at 1%-3%, with operating margin around 7% due to ERP implementation and tariffs.

• Capital expenditures for 2026 expected at $200M–$225M, with ~30 net store openings and 125 new store experiences.