Twenty-Six Weeks Ended Twenty-Six Weeks Ended
% of | % of | |||
August 1, 2026 | Net Sales | August 2, 2025 | Net Sales | |
Net sales | $ 2,380,510 | 100.0 % | $ 2,305,871 | 100.0 % |
Cost of sales, exclusive of depreciation and amortization | 779,947 | 32.8 % | 868,723 | 37.7 % |
Selling expense | 875,237 | 36.8 % | 775,293 | 33.6 % |
General and administrative expense | 387,538 | 16.3 % | 350,250 | 15.2 % |
Other operating (income) loss, net | (3,709) | (0.2)% | 3,414 | 0.1 % |
Operating income | 341,497 | 14.3 % | 308,191 | 13.4 % |
Interest expense | 1,011 | - % | 1,281 | 0.1 % |
Interest income | (13,889) | (0.6)% | (10,538) | (0.5)% |
Interest income, net | (12,878) | (0.5)% | (9,257) | (0.4)% |
Income before income taxes | 354,375 | 14.9 % | 317,448 | 13.8 % |
Income tax expense | 100,717 | 4.2 % | 92,321 | 4.0 % |
Net income | 253,658 | 10.7 % | 225,127 | 9.8 % |
Less: Net income attributable to noncontrolling interests | 2,804 | 0.1 % | 3,331 | 0.1 % |
Net income attributable to A&F | $ 250,854 | 10.5 % | $ 221,796 | 9.6 % |
Net income per share attributable to A&F
Basic | $ | 5.65 | $ | 4.58 |
Diluted | $ | 5.59 | $ | 4.47 |
Weighted-average shares outstanding:
Basic | 44,368 | 48,382 |
Diluted | 44,864 | 49,592 |
The company believes that each of the non-GAAP financial measures presented are useful to investors as they provide a measure of the company's operating performance excluding the effect of certain items which the company believes do not reflect its future operating outlook, therefore supplementing investors' understanding of comparability of operations across periods. Management used these non-GAAP financial measures during the periods presented to assess the company's performance and to develop expectations for future operating performance. Non-GAAP financial measures should be used supplementally to, and not as an alternative to, the company's GAAP financial results, and may not be calculated in the same manner as similar measures presented by other companies.
The company provides comparable sales, defined as the percentage year-over-year change in the aggregate of: (1) sales for stores that have been open as the same brand at least one year and whose square footage has not been expanded or reduced by more than 20% within the past year, with prior year's net sales converted at the current year's foreign currency exchange rate to remove the impact of foreign currency rate fluctuation, and (2) digital net sales with prior year's net sales converted at the current year's foreign currency exchange rate to remove the impact of foreign currency rate fluctuation.
The company also provides certain financial information on a constant currency basis to enhance investors' understanding of underlying business trends and operating performance, by removing the impact of foreign currency exchange rate fluctuations. The effect from foreign currency, calculated on a constant currency basis, is determined by applying current year average exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share effect from foreign currency is calculated using a 26% tax rate.
In addition, the company provides EBITDA and adjusted EBITDA as supplemental measures used by the company's executive management to assess the company's performance. We also believe these supplemental performance measures are meaningful information for investors and other interested parties to use in computing the company's core financial performance over multiple periods and with other companies by excluding the impact of differences in tax jurisdictions, debt service levels and capital investment.
Abercrombie & Fitch Co. | |||
Schedule of Non-GAAP Financial Measures | |||
Thirteen Weeks Ended August 2, 2025 | |||
(in thousands, except per share data) | |||
(Unaudited) | |||
GAAP (1) | Excluded items | Adjusted non-GAAP | |
Litigation settlement (2) | $ (38,574) | $ (38,574) | $ - |
Operating income | 206,658 | 38,574 | 168,084 |
Income before income taxes | 209,132 | 38,574 | 170,558 |
Income tax expense (3) | 65,744 | 9,949 | 55,795 |
Net income attributable to A&F | $ 141,383 | $ 28,625 | $ 112,758 |
Net income per diluted share attributable to A&F | $ 2.91 | $ 0.59 | $ 2.32 |
Diluted weighted-average shares outstanding: | 48,551 | 48,551 | |
(1) "GAAP" refers to accounting principles generally accepted in the United States of America.
(2) Excluded items consist of favorable settlement, net of legal fees, of claims to resolve payment card interchange fee antitrust litigation.
(3) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.
Schedule of Non-GAAP Financial Measures Twenty-Six Weeks Ended August 2, 2025 (in thousands, except per share data) (Unaudited) | ||
GAAP (1) | Excluded items | Adjusted non-GAAP |
Litigation settlement (2) $ (38,574) | $ (38,574) | $ - |
Operating income 308,191 | 38,574 | 269,617 |
Income before income taxes 317,448 | 38,574 | 278,874 |
Income tax expense (3) 92,321 | 9,949 | 82,372 |
Net income attributable to A&F $ 221,796 | $ 28,625 | $ 193,171 |
Net income per diluted share attributable to A&F $ 4.47 | $ 0.58 | $ 3.90 |
Diluted weighted-average shares outstanding: 49,592 | 49,592 | |
(1) "GAAP" refers to accounting principles generally accepted in the United States of America.
(2) Excluded items consist of favorable settlement, net of legal fees, of claims to resolve payment card interchange fee antitrust litigation.
(3) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis.
Reconciliation of Constant Currency Financial Measures Thirteen Weeks Ended August 1, 2026 and August 2, 2025 (in thousands, except percentage and basis point changes and per share data) (Unaudited)2026 | 2025 | % Change | |
Net sales GAAP (1) | $ 1,266,689 | $ 1,208,560 | 5% |
Impact from changes in foreign currency exchange rates (2) | - | (223) | - |
Net sales on a constant currency basis | $ 1,266,689 | $ 1,208,337 | 5% |
Operating income | 2026 | 2025 | BPS Change (4) |
GAAP (1) | $ 252,700 | $ 206,658 | 280 |
Excluded item (3) | - | 38,574 | (320) |
Adjusted non-GAAP | $ 252,700 | $ 168,084 | 600 |
Impact from changes in foreign currency exchange rates (2) | - | 787 | (10) |
Non-GAAP constant currency basis | $ 252,700 | $ 168,871 | 590 |
Net income per share attributable to A&F | 2026 | 2025 | $ Change |
GAAP (1) | $ 4.17 | $ 2.91 | $1.26 |
Excluded item, net of tax (3) | - | 0.59 | (0.59) |
Adjusted non-GAAP | $ 4.17 | $ 2.32 | $1.85 |
Impact from changes in foreign currency exchange rates (2) | - | 0.01 | (0.01) |
Non-GAAP constant currency basis | $ 4.17 | $ 2.33 | $1.84 |
(1) "GAAP" refers to accounting principles generally accepted in the United States of America.
(2) The estimated impact from foreign currency is determined by applying current period exchange rates to prior year results and is net of the year-over-year impact from hedging. The per diluted share estimated impact from foreign currency is calculated using a 26% tax rate.
(3) Excluded item consists of favorable settlement, net of legal fees, of payment card interchange fee litigation.
(4) The estimated basis point change has been rounded based on the percentage change.
Abercrombie & Fitch Co. Reconciliation of EBITDA and Adjusted EBITDA Thirteen Weeks Ended August 1, 2026 and August 2, 2025 (in thousands) (Unaudited)% of | % of | |||
2026 | Net Sales | 2025 | Net Sales | |
Net income | $ 185,539 | 14.6 % $ | 143,388 | 11.9 % |
Income tax expense | 74,752 | 5.9 | 65,744 | 5.4 |
Interest income, net | (7,591) | (0.6) | (2,474) | (0.2) |
Depreciation and amortization | 43,279 | 3.5 | 37,424 | 3.1 |
EBITDA (1) | $ 295,979 | 23.4 % $ 244,082 | 20.2 % | |
Adjustments to EBITDA Litigation settlement | - | - (38,574) | (3.2) | |
Adjusted EBITDA (1) | $ 295,979 | 23.4 % $ 205,508 | 17.0 % | |
% of | % of | ||||
2026 | Net Sales | 2025 | Net Sales | ||
Net income | $ 253,658 | 10.7 % $ | 225,127 | 9.8 % | |
Income tax expense | 100,717 | 4.2 | 92,321 | 4.0 | |
Interest (income) expense, net | (12,878) | (0.5) | (9,257) | (0.4) | |
Depreciation and amortization | 85,583 | 3.5 | 76,000 | 3.3 | |
EBITDA (1) | $ 427,080 17.9 % $ 384,191 | 16.7 % | |||
Adjustments to EBITDA Litigation settlement | - - (38,574) | (1.7) | |||
Adjusted EBITDA (1) | $ | 427,080 | 17.9 % $ | 345,617 | 15.0 % |
(1) EBITDA and Adjusted EBITDA are supplemental financial measures that are not defined or prepared in accordance with GAAP. EBITDA is defined as net income before interest, income taxes and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for a favorable settlement, net of legal fees, of payment card interchange fee litigation.
Condensed Consolidated Balance Sheets (in thousands) (Unaudited)August 1, 2026 | January 31, 2026 | August 2, 2025 | |
Assets | |||
Current assets: | |||
Cash and equivalents | $ 627,716 | $ 759,540 | $ 572,730 |
Marketable securities | 10,283 | 25,036 | 30,795 |
Receivables | 190,347 | 146,757 | 174,000 |
Inventories | 591,662 | 601,218 | 592,966 |
Other current assets | 125,670 | 117,913 | 118,624 |
Total current assets | 1,545,678 | 1,650,464 | 1,489,115 |
Property and equipment, net | 708,576 | 674,079 | 638,590 |
Operating lease right-of-use assets | 1,107,421 | 997,399 | 933,559 |
Other assets | 233,181 | 219,932 | 240,677 |
Total assets | $ 3,594,856 | $ 3,541,874 | $ 3,301,941 |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Accounts payable | $ 354,209 | $ 377,465 | $ 368,051 |
Accrued expenses | 443,364 | 465,549 | 429,616 |
Short-term portion of operating lease liabilities | 262,354 | 241,265 | 223,020 |
Income taxes payable | 38,871 | 21,721 | 17,354 |
Total current liabilities | $ 1,098,798 | $ 1,106,000 | $ 1,038,041 |
Long-term liabilities: | |||
Long-term portion of operating lease liabilities | $ 1,025,086 | $ 926,830 | $ 876,461 |
Other liabilities | 101,310 | 88,633 | 80,235 |
Total long-term liabilities | 1,126,396 | 1,015,463 | 956,696 |
Total Abercrombie & Fitch Co. stockholders' equity | 1,354,521 | 1,403,895 | 1,292,255 |
Noncontrolling interests | 15,141 | 16,516 | 14,949 |
Total stockholders' equity | 1,369,662 | 1,420,411 | 1,307,204 |
Total liabilities and stockholders' equity | $ 3,594,856 | $ 3,541,874 | $ 3,301,941 |
Twenty-Six Weeks Ended
August 1, 2026 | August 2, 2025 | |
Operating activities | ||
Net cash provided by operating activities | $ 313,401 | $ 112,893 |
Investing activities | ||
Purchases of marketable securities | $ (19,600) | $ - |
Proceeds from maturities of marketable securities | 34,600 | 85,000 |
Purchases of property and equipment | (129,357) | (116,943) |
Net cash used for investing activities | $ (114,357) | $ (31,943) |
Financing activities | ||
Purchases of common stock | (286,446) | $ (251,223) |
Acquisition of common stock for tax withholding obligations | (38,573) | (34,830) |
Other financing activities | (4,797) | (4,660) |
Net cash used for financing activities | $ (329,816) | $ (290,713) |
Effect of foreign currency exchange rates on cash | $ (1,159) | $ 9,700 |
Net decrease in cash and equivalents, and restricted cash and equivalents | $ (131,931) | $ (200,063) |
Cash and equivalents, and restricted cash and equivalents, beginning of period | $ 766,916 | $ 780,395 |
Cash and equivalents, and restricted cash and equivalents, end of period | $ 634,985 | $ 580,332 |
Total Tariff Expense (Benefit)
(Approximate, $ Millions) FY 2025 FY 2026
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | ||
Tariff Expense (Benefit) (1) | $- | $5 | $25 | $60 | $90 | $20 | $15 | |
IEEPA Tariff Refund (2) | $- | $- | $- | $- | $- | $- | $(100) | |
Total Tariff Impact ($ Millions) (3) | $- | $5 | $25 | $60 | $90 | $20 | $(85) | |
Year-Over-Year Expense (Benefit) (Approximate, $ Millions) | FY 2025 | FY | 2026 | |||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | ||
Tariff Expense (Benefit) (1) | $- | $5 | $25 | $60 | $90 | $20 | $10 | |
IEEPA Tariff Refund (2) | $- | $- | $- | $- | $- | $- | $(100) | |
Total Tariff Impact ($ Millions) (3) | $- | $5 | $25 | $60 | $90 | $20 | $(90) | |
Year-Over-Year Expense (Benefit) (Approximate, Basis Points) | FY 2025 | FY | 2026 | |||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | ||
Tariff Expense (Benefit) | -bps | 40bps | 210bps | 370bps | 170bps | 180bps | 100bps | |
IEEPA Tariff Refund | -bps | -bps | -bps | -bps | -bps | -bps | (790)bps | |
Total Tariff Impact (Basis Points) | -bps | 40bps | 210bps | 370bps | 170bps | 180bps | (690)bps |
(1) Reflects the estimated impact, net of mitigation efforts, of then-effective tariff rates on all goods imported into the United States and sold, for the period. Includes IEEPA, Section 122, and Section 301 tariffs.
(2) Reflects the impact of IEEPA tariff refunds, excluding accrued interest.
(3) The combined estimated impact of the tariff expense and IEEPA tariff refunds is included in the Company's fiscal 2026 outlook, including operating margin and net income per diluted share. Refer to outlook section for further detail. Separately, for the second quarter of 2026, we estimate IEEPA tariff refunds of approximately $100 million had a beneficial impact of $1.75 on net income per diluted share.
(in thousands, except per share data)Fiscal 2025 | Fiscal 2026 | |||||||||||||||||
2024 | Q1 | Q2 | Q3 | Q4 | 2025 | Q1 | Q2 | 2026 | ||||||||||
Net sales | $ | 4,948,587 | $ 1,097,311 | $ 1,208,560 | $ 1,290,619 | $ 1,669,802 | $ | 5,266,292 | $ 1,113,821 | $ 1,266,689 | $ | 2,380,510 | ||||||
Cost of sales, exclusive of depreciation and amortization | 1,773,926 | 417,133 | 451,590 | 483,670 | 676,491 | 2,028,884 | 413,838 | 366,109 | 779,947 | |||||||||
Selling expense | 1,689,988 | 399,937 | 375,356 | 459,548 | 574,792 | 1,809,633 | 431,195 | 444,042 | 875,237 | |||||||||
General and administrative expense | 750,485 | 174,925 | 175,325 | 193,402 | 181,819 | 725,471 | 182,754 | 204,784 | 387,538 | |||||||||
Other operating (income) loss, net | (6,632) | 3,783 | (369) | (1,022) | 769 | 3,161 | (2,763) | (946) | (3,709) | |||||||||
Operating income | 740,820 | 101,533 | 206,658 | 155,021 | 235,931 | 699,143 | 88,797 | 252,700 | 341,497 | |||||||||
Interest expense | 12,077 | 661 | 620 | 550 | 544 | 2,375 | 450 | 561 | 1,011 | |||||||||
Interest income | (39,934) | (7,444) | (3,094) | (6,491) | (6,975) | (24,004) | (5,737) | (8,152) | (13,889) | |||||||||
Interest (income) expense, net | (27,857) | (6,783) | (2,474) | (5,941) | (6,431) | (21,629) | (5,287) | (7,591) | (12,878) | |||||||||
Income before income taxes | 768,677 | 108,316 | 209,132 | 160,962 | 242,362 | 720,772 | 94,084 | 260,291 | 354,375 | |||||||||
Income tax expense | 194,661 | 26,577 | 65,744 | 45,862 | 67,594 | 205,777 | 25,965 | 74,752 | 100,717 | |||||||||
Net income | 574,016 | 81,739 | 143,388 | 115,100 | 174,768 | 514,995 | 68,119 | 185,539 | 253,658 | |||||||||
Less: Net income attributable to noncontrolling interests | 7,793 | 1,326 | 2,005 | 2,105 | 2,638 | 8,074 | 985 | 1,819 | 2,804 | |||||||||
Net income attributable to Abercrombie & Fitch Co. | $ | 566,223 | $ | 80,413 | $ | 141,383 | $ | 112,995 | $ | 172,130 | $ | 506,921 | $ | 67,134 | $ | 183,720 | $ | 250,854 |
Net income per share attributable to Abercrombie & Fitch Co.: | ||||||||||||||||||
Basic | $11.14 | $1.63 | $2.97 | $2.41 | $3.77 | $10.71 | $1.49 | $4.20 | $5.65 | |||||||||
Diluted | $10.69 | $1.59 | $2.91 | $2.36 | $3.68 | $10.46 | $1.47 | $4.17 | $5.59 | |||||||||
Weighted-average shares outstanding: | ||||||||||||||||||
Basic | 50,839 | 49,214 | 47,550 | 46,842 | 45,668 | 47,319 | 44,969 | 43,767 | 44,368 | |||||||||
Diluted | 52,971 | 50,634 | 48,551 | 47,881 | 46,837 | 48,476 | 45,677 | 44,051 | 44,864 | |||||||||
Fiscal 2025 | Fiscal 2026 | |||||||||||||||
2024 | Q1 | Q2 | Q3 | Q4 | 2025 | Q1 | Q2 | 2026 | ||||||||
Comparable sales by segment: (1) | ||||||||||||||||
Americas comparable sales (2) (3) | 17% | 4% | 5% | 4% | 2% | 4% | 1% | 1 % | 1 % | |||||||
EMEA comparable sales (2) (4) | 16% | 6% | -5% | 2% | -3% | -% | -11% | (4)% | (8)% | |||||||
APAC comparable sales (2) (5) | 19% | 2% | 1% | -12% | -% | -3% | 15% | 13 % | 14 % | |||||||
Comparable sales (2) | 17% | 4% | 3% | 3% | 1% | 3% | -1% | - % | - % | |||||||
Comparable sales by brand family: | ||||||||||||||||
Abercrombie comparable sales (2) | 15% | -10% | -11% | -7% | -1% | -7% | -% | 4 % | 2 % | |||||||
Hollister comparable sales (2) | 19% | 23% | 19% | 15% | 3% | 13% | -2% | -3 % | (2)% | |||||||
Comparable sales (2) | 17% | 4% | 3% | 3% | 1% | 3% | -1% | - % | - % | |||||||
(1) Comparable sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order.
(2) Comparable sales are calculated on a constant currency basis. Refer to "REPORTING AND USE OF GAAP AND NON-GAAP MEASURES," for further discussion.
(3) The Americas segment includes the results of operations in North America and South America.
(4) The EMEA segment includes the results of operations in Europe, the Middle East and Africa.
(5) The APAC segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania.