Abercrombie & Fitch Co. reported its financial results for the thirteen weeks ended May 2, 2026, revealing a net sales increase of 2% to $1.11 billion, compared to $1.10 billion in the same period last year. The company's net income attributable to Abercrombie & Fitch decreased to $67.1 million, or $1.47 per diluted share, down from $80.4 million, or $1.59 per diluted share, in the prior year. The decline in profitability was attributed to increased selling and administrative expenses, which rose to $431.2 million from $399.9 million, and a decrease in operating income to $88.8 million from $101.5 million.
The company experienced notable changes in its operational metrics. The Americas segment saw a 3% increase in net sales, while the EMEA segment faced a 10% decline, primarily due to lower third-party volume amid escalating regional conflicts. The APAC segment, however, reported a significant 24% increase in net sales, driven by higher average unit retail (AUR) and favorable foreign currency impacts. Overall, comparable sales decreased by 1%, reflecting challenges in the EMEA region.
In terms of strategic developments, Abercrombie & Fitch has focused on expanding its store footprint and enhancing its digital presence. As of May 2, 2026, the company operated 834 retail stores, with plans for approximately 30 net new store openings in the fiscal year. The company also reported a significant investment in capital expenditures, totaling $61.3 million for the quarter, aimed at modernizing its store network and improving customer experiences.
The company’s balance sheet showed a decrease in cash and equivalents to $594.1 million from $759.5 million at the beginning of the fiscal year, while total assets decreased to $3.45 billion from $3.54 billion. The decline in cash was attributed to increased investments and share repurchase activities, with approximately $105 million spent on repurchasing shares during the quarter. The company maintains a strong liquidity position, with total liquidity of approximately $1 billion, supported by an asset-based revolving credit facility of up to $500 million.
Looking ahead, Abercrombie & Fitch aims to navigate ongoing challenges, including inflationary pressures and geopolitical uncertainties, while focusing on sustainable growth strategies. The company plans to enhance its operational efficiency, expand into new markets, and leverage technology to improve customer engagement. Despite the current economic landscape, management remains committed to maintaining double-digit operating margins and expanding net income per share in the upcoming quarters.
About ABERCROMBIE & FITCH CO /DE/
Abercrombie & Fitch Co. is a global, digitally-led omnichannel retailer specializing in apparel, personal care products, and accessories for men, women, and kids. With brands like Abercrombie and Hollister, the company targets diverse consumer segments across the Americas, EMEA, and APAC. Its strategic initiatives, including the Always Forward Plan, focus on digital transformation and enhancing customer experiences, positioning the company to capitalize on evolving market trends and consumer preferences.
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