Abercrombie & Fitch's (ANF) fiscal first-quarter earnings topped Wall Street's projections amid record sales for the apparel retailer, sending its shares higher in Wednesday trading.
Adjusted per-share earnings for the quarter ended May 2 fell to $1.47 from $1.70 a year earlier, but surpassed the FactSet-polled consensus of $1.28. Net sales rose 2% to $1.11 billion, while analysts expected $1.12 billion.
Shares of the company were up nearly 13% intraday. The stock is down 33% so far this year.
"We delivered against our commitments growing net sales for the 14th consecutive quarter, setting a record (first quarter) despite headwinds in the Middle East and other select countries in (Europe, the Middle East and Africa)," Chief Executive Fran Horowitz told analysts on an earnings call, according to a FactSet transcript.
Revenue for the Abercrombie brand grew 3% for the quarter, while Hollister's sales were flat.
"Regionally, the Americas grew 3% with growth across brands and good traffic levels in both stores and digital," Horowitz said. "In EMEA, continued growth in the UK was more than offset by declines in the Middle East and other European markets as the regional conflict ramped-up, driving EMEA sales down 10% for the quarter."
Its been about three months since the US-Israel war with Iran started on Feb. 28, though a fragile ceasefire between Washington and Tehran continues to hold.
For fiscal 2026, Abercrombie & Fitch continues to expect net income from $10.20 to $11 per share, while four analysts in a FactSet survey expect EPS of $10.64 on a GAAP basis. The company reiterated its revenue guidance of 3% to 5% growth, while the Street projects sales to increase to $5.46 billion from the previous year's $5.27 billion.
"As we shared in our March call, the team is closely monitoring developments in the Middle East, using our playbook and global operating model to remain agile," Horowitz said. "Sticking with our playbook, we're focused on what we can control, including our inventory levels and marketing investments, ensuring we can respond to what's happening in real time."
For the current quarter, the company anticipates EPS between $1.80 and $2, while four analysts polled by FactSet are looking for $2.48. Abercrombie & Fitch sees quarterly sales growing 2% to 4%, while the Street expects $1.25 billion, compared with $1.21 billion a year earlier.
Price: $83.90, Change: $+9.12, Percent Change: +12.20%
