Abercrombie & Fitch Co. (NYSE: ANF) has announced its financial results for the fourth quarter and fiscal year ended January 31, 2026. Marking a robust performance, the company recorded its thirteenth consecutive quarter of growth, driven by strategic investments and a solid operational model.

1. Record Sales and Profitability

In the fourth quarter, Abercrombie & Fitch reported net sales of $1.67 billion, a 5% increase compared to the same period last year. The results reflect a 1% rise in comparable sales. CEO Fran Horowitz highlighted the impressive performance, noting that both operating margins and earnings per share were at the high end of the company's expectations set earlier in January.

For the full fiscal year, Abercrombie & Fitch achieved record net sales of $5.27 billion, representing a 6% growth from the previous year, and a 3% increase in comparable sales. Operating income for the year stood at $699 million, with an operating margin of 13.3%, although this was a slight decline from the 15.0% margin reported last year.

Earnings Per Share

The company's net income per diluted share for the fourth quarter was $3.68, an improvement from $3.57 in the same quarter of the prior year. For the full year, net income per diluted share was $10.46, down from $10.69 in the previous fiscal year. Adjusted non-GAAP earnings for the fourth quarter matched the GAAP figures, indicating strong operational consistency amid external market pressures.

2. Segment Performance

Abercrombie's performance varied across its geographic segments and brand families:

Americas: Generated $1.38 billion in net sales for the fourth quarter, a 5% increase over the prior year, with comparable sales rising 2%.

EMEA: Reported net sales of $241 million, up 8% year-over-year, although comparable sales fell by 3%.

APAC: Achieved net sales of $44 million, reflecting a 9% increase, with flat comparable sales.

In terms of brands, Hollister outperformed Abercrombie, with net sales of $863 million in the fourth quarter, marking a 6% increase, while Abercrombie's sales rose by 4% to $807 million.

3. Financial Position and Capital Allocation

As of January 31, 2026, Abercrombie & Fitch's liquidity remained strong, with cash and equivalents totaling $760 million. The company utilized its solid operating cash flow of $619 million effectively, repurchasing 5.4 million shares throughout the fiscal year, which accounted for 11% of shares outstanding at the beginning of the year. This strategic move underscores the company's commitment to enhancing shareholder value.

Share Repurchases and Future Outlook

For fiscal 2026, Abercrombie & Fitch anticipates net sales growth in the range of 3% to 5% and aims to maintain double-digit operating margins. The company also plans to invest approximately $450 million in share repurchases over the year. The first quarter of 2026 is projected to see net sales growth of 1% to 3%, partly affected by anticipated tariffs on imports, which are expected to impact sales by approximately 290 basis points.

4. Conclusion

Abercrombie & Fitch Co. has demonstrated resilience and adaptability in a challenging retail environment. With a strong financial foundation, ongoing investments in its brands, and a focus on shareholder returns, the company is well-positioned to navigate future market dynamics and achieve its growth objectives in the coming fiscal year.

Original press release