Abercrombie & Fitch Reports 5% Revenue Growth and Increased Net Income in Q2 Fiscal 2026

Abercrombie & Fitch Co. reported a notable increase in financial performance for the second quarter of Fiscal 2026, ending August 1, 2026. The company achieved net sales of $1.27 billion, a 5% increase from $1.21 billion in the same period last year. Operating income rose to $252.7 million, up from $206.7 million, while net income attributable to Abercrombie & Fitch increased to $183.7 million, compared to $141.4 million in the prior year. This resulted in a net income per diluted share of $4.17, significantly higher than $2.91 from the previous year.

The company experienced a reduction in cost of sales, which decreased to 28.9% of net sales from 37.4% in the prior year, primarily due to a net tariff benefit from IEEPA refunds and improved average unit retail (AUR) growth. Selling expenses increased to $444.0 million, reflecting a rise in marketing and fulfillment costs, while general and administrative expenses also rose to $204.8 million, attributed to higher employee compensation and outside services. The overall operating margin improved to 19.9%, up from 17.1% in the previous year.

Strategically, Abercrombie & Fitch has focused on expanding its global footprint, operating 846 retail stores as of August 1, 2026, with plans for approximately 30 net new store openings in Fiscal 2026. The company also remodeled 40 stores and closed seven during the first half of the fiscal year. The brand's performance was bolstered by a 19% increase in net sales in the Asia-Pacific region, while the Americas saw a 5% increase. However, the EMEA region experienced a slight decline in comparable sales.

The company’s cash position as of August 1, 2026, stood at $627.7 million, down from $759.5 million at the beginning of the fiscal year. Abercrombie & Fitch reported net cash provided by operating activities of $313.4 million for the first half of the fiscal year, a significant increase from $112.9 million in the same period last year. The company continues to prioritize investments in its business, including digital and omnichannel initiatives, while maintaining a robust share repurchase program with approximately $568 million remaining under its current authorization.

Looking ahead, Abercrombie & Fitch aims to sustain its growth trajectory by enhancing its operational productivity and customer engagement strategies. The company is also focused on navigating the challenges posed by global economic conditions, including inflation and supply chain disruptions, while leveraging its strong liquidity position to capitalize on future opportunities.