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Research Alert: Abercrombie Posts Mixed Fq1; Maintains Full-year Guidance

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

ANF posted Q1 2026 EPS of $1.47 vs. $1.59 prior year, $0.18 above consensus despite a Y/Y decline. Net sales reached a record $1.114B (+2% Y/Y), $9M above estimates, marking the 14th consecutive quarter of growth though comparable sales declined 1%. We believe ANF is deserving of a P/E multiple well above 10x, trading at just 7x the midpoint of full-year EPS guidance and below peers despite improving fundamentals. Management maintained full-year guidance of 3-5% revenue growth, 12.0-12.5% operating margin, and EPS of $10.20-$11.00. Regional performance showed divergence with Americas (+3% Y/Y) and APAC (+24% Y/Y) driving growth while EMEA declined 10% due to Middle East conflict impact. Operating margin compressed 130 bps to 8.0% from tariff pressures. The company repurchased $105M in shares during Q1 with $745M remaining on authorization. We expect ANF to continue aggressive share buybacks at current valuation levels.

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