Q1 2026 Abercrombie & Fitch Co Earnings Call Transcript
Key Points
- Abercrombie & Fitch Co (ANF) delivered record Q1 net sales of $1.1 billion, marking the 14th consecutive quarter of growth.
- The company exceeded expectations on both operating income and earnings per share, with EPS reaching $1.47.
- The Americas region saw a 3% sales increase, with strong performance across brands and good traffic levels in both stores and digital channels.
- Abercrombie Brands achieved a 3% net sales growth, driven by positive customer response to spring assortments and consistent traffic and conversion levels.
- The company successfully launched an upgraded merchandising ERP, which is expected to enable long-term channel and category expansion.
- Sales in the EMEA region declined by 10% due to regional conflicts, particularly impacting the Middle East and other European markets.
- Comparable sales for the quarter were down 1%, with Hollister Brands experiencing flat net sales and a 2% decline in comparable sales.
- The company faced a 130 basis point year-over-year decline in operating margin, primarily due to increased marketing investment and ERP implementation costs.
- Tariff expenses and elevated freight costs are expected to continue impacting gross margins throughout the year.
- The company anticipates ongoing pressure in parts of EMEA, which could affect overall sales growth projections for the full year.
Good day, and thank you for standing by. Welcome to the Abercrombie & Fitch first quarter fiscal year 2026 earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Mo Gupta, VP of Investor Relations. Please go ahead.
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Thank you. Good morning, and welcome to our first quarter 2026 earnings call. Joining me today on the call are Fran Horowitz, Chief Executive Officer; Scott Lipesky, Chief Operating Officer; and Robert Ball, Chief Financial Officer. . Earlier this morning, we issued our first quarter earnings release, which is available on our website at corporate.abercrombie.com under the Investors section.
Also available on our website is an investor presentation. Please keep in mind that we will make certain forward-looking statements on the call. These statements are subject to the safe harbor provisions of the Private Securities
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