Abercrombie & Fitch Lifts Full-Year Outlook as Fiscal Second-Quarter Results Top Views

11:15 AM EDT, 08/26/2026 (MT Newswires) -- Abercrombie & Fitch (ANF) raised its full-year outlook on Wednesday as tariff-related refund benefits helped the apparel retailer post fiscal second-quarter results above Wall Street's estimates. The company now anticipates adjusted earnings to be in a range of $13.10 to $13.60 per share for fiscal 2026, up from its prior guidance of $10.20 to $11. Sales are pegged to grow by around 5%, reflecting the higher end of the retailer's previously issued forecast. The current consensus on FactSet is for non-GAAP EPS of $10.72 and for sales to increase by 3.5%. Shares of Abercrombie & Fitch spiked 36% in Wednesday trade, taking its year-to-date gain to 16%. The retailer received $100 million in refunds in the second quarter related to the International Emergency Economic Powers Act tariffs and expects the benefit to have a favorable impact of about 220 basis points on its operating margin for the fiscal year, Chief Financial Officer Robert Ball said during an earnings call, according to a FactSet transcript. The metric is projected to be in between 14.5% and 15%, up from prior expectations of 12% to 12.5%. "Our first half execution and strong start to August support a higher full-year sales expectation and an increase to our operating margin and EPS outlook," Ball said on the call. Earlier this year, the US Supreme Court ruled that the Trump administration lacked authority under the IEEPA to impose certain tariffs, paving the way for refunds to companies that had paid the duties. Abercrombie & Fitch's adjusted EPS jumped to $4.17 for the quarter ended Aug. 1 from $2.32 the year before, well above the Street's view for $1.99. Tariff-related refunds were a benefit of $1.75 to the bottom line. Sales improved 5% to $1.27 billion, topping the average analyst estimate of $1.25 billion. "Growth was balanced across our brands and regions, highlighted by accelerating momentum in the Americas and improving trends in (Europe, the Middle East and Africa)," the retailer's chief executive, Fran Horowitz, said in the earnings release. "Both brands achieved record second quarter net sales." Revenue for the Abercrombie brand grew 8% for the quarter, while Hollister's sales inclined 2%. Revenue advanced across all regions, led by a 19% jump in Asia Pacific. In a note emailed Tuesday, UBS Securities said it expected Abercrombie & Fitch to post better-than-expected quarterly results, but with limited upside as the market would have already priced in a similar outcome. For the ongoing three-month period, the retailer anticipates per-share net income to be in a range of $2.90 to $3.20, with sales rising by 5% to 6%. The Street is looking for EPS of $2.82 and sales growth of 4.3%. Abercrombie & Fitch is expecting $20 million in tariff-related refunds in the third quarter, boosting its EPS by $0.35 and operating margin by about 160 basis points, Ball told analysts on the call. Urban Outfitters (URBN) is scheduled to release its latest financial results after the markets close Wednesday, while Gap (GAP) posts its earnings on Thursday. American Eagle Outfitters (AEO) is slated to announce its results next month. Price: 144.52, Change: +35.62, Percent Change: +32.70