Abercrombie & Fitch shares surged 32.8% in morning trading after the company reported fiscal Q2 2026 earnings that far exceeded expectations, sending the stock to a new 52-week high of $144.79.
The retailer posted adjusted earnings per share of $4.17, more than double the Wall Street consensus estimate of $1.98. Net sales rose 5% year-over-year to $1.27 billion, marking the 15th consecutive quarter of growth. Operating margin expanded to 19.9%, nearly double the company’s prior guidance of around 10%.
A $100 million pre-tax refund of IEEPA tariffs contributed approximately $1.75 per diluted share to earnings. Regional performance showed strong momentum in Asia-Pacific, where sales climbed 19%, while the Americas grew 5% and Europe, the Middle East and Africa increased 2%. Abercrombie brand sales rose 8%, outpacing Hollister’s 2% gain.
For the full year 2026, Abercrombie raised its EPS guidance to $13.10–$13.60 from the prior consensus of $10.40. Third-quarter EPS is forecast at $2.90–$3.20, above the $2.80 estimate. UBS maintained a Buy rating with a $153 price target.
CEO Fran Horowitz said the company "delivered record second quarter net sales and our 15th consecutive quarter of growth." The broader market showed little movement, with the S&P 500 up 0.1% and the Dow Jones and Nasdaq essentially flat.
