A month has gone by since the last earnings report for Abercrombie & Fitch (ANF Quick QuoteANF - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Abercrombie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Abercrombie Q4 Earnings Top Estimates, Hollister Brand Up 6%

Abercrombie & Fitch Co posted strong fourth-quarter fiscal 2025 results, wherein the top line came in line with the Zacks Consensus Estimate and the bottom line surpassed the same. Meanwhile, the company’s sales and earnings increased year over year.

Abercrombie’s earnings per share (EPS) of $3.68 in the fiscal fourth quarter increased 3.1% from $2.57 reported in the year-ago quarter. Also, the bottom line beat the Zacks Consensus Estimate of $3.56 per share.

Net sales of $1.67 billion advanced 5% year over year on a reported basis and 4% on a constant-currency basis. ANF’s comparable sales (comps) improved 1%. The top-line growth was driven by broad-based net sales growth across most regions, brands and channels.

ANF marked its thirteenth straight quarter of sales growth, delivering record fourth-quarter and full-year net sales that increased from the prior year, supported by broad-based momentum across regions, brands and channels. Profitability stayed healthy, earnings per share beat expectations, and management emphasized ongoing strategic investments and share repurchases, along with a positive outlook for continued sales and earnings growth in the upcoming fiscal year.

Abercrombie’s Regional & Brand Sales Drive Growth in Q4

Sales in the Americas increased 5% year over year to $1.4 billion, EMEA sales grew 8% to $241.4 million and APAC sales rose 9% to $44.5 million. Comps rose 2% in the Americas, while the metric was down 2% in EMEA and 0% in the APAC region.

Net sales rose 4% year over year to $806.5 million for the Abercrombie brand. Moreover, sales increased 6% to $863.3 million at Hollister. The Abercrombie brand contributed 48.4% to the total company sales, whereas Hollister contributed 51.8% to sales. Comps fell 1% for Abercrombie but grew 3% for Hollister in the quarter.

Our model predicted sales growth of 2.2% for the Abercrombie brand and 8.1% for Hollister. We estimated sales to increase 5.2% in the Americas, 5.7% in EMEA and 4.5% in APAC.

ANF’s Quarterly Performance: Margins & Expenses

Selling expenses were $574.8 million, which rose 9.2% year over year. As a percentage of sales, selling expenses expanded 120 basis points (bps) to 34.4%. General and administrative costs fell 6.5% to $181.8 million, while the metric, as a percentage of sales, decreased 140 bps to 10.9%.

The company reported an operating income of $235.9 million, down 7.9% from $256.1 million in the year-ago period. It registered an operating margin of 14.1%, down 210 bps from the year-ago quarter.

ANF’s Financial Health

Abercrombie ended the fiscal year with cash and cash equivalents of $759.5 million and stockholders’ equity of $1.42 billion, excluding non-controlling interests.

The company had a liquidity of $1.2 billion at the end of the fiscal year, which included cash and equivalents and borrowing available under the ABL Facility. Net cash provided by operating activities was $619 million as of Jan. 31, 2026.

In the fourth quarter of fiscal 2025, the company bought back about 0.9 million shares for roughly $100 million. For the fiscal year ended Jan. 31, 2026, it repurchased 5.4 million shares totaling $450 million, resulting in an 11% reduction in shares outstanding compared with the start of the year. ANF still has $850 million available under the repurchase program authorized in March 2025.

Abercrombie’s Q1 & FY26 Outlook

Management provided the view for the first quarter and fiscal 2026. For the first quarter of fiscal 2026, net sales are projected to rise 1-3% from $1.1 billion recorded in the year-ago period. The operating margin for the fiscal first quarter is expected to be 7%. It expects EPS to be in the band of $1.20-$1.30, lower than $1.59 reported in the year-ago quarter. The effective tax rate is expected to be about 26%. The company expects share repurchase of $100 million in the first quarter of fiscal 2026. 

For fiscal 2026, the company expects year-over-year sales growth in the range of 3-5% from $5.3 billion registered last fiscal. This upside is likely to be backed by growth across regions and brands. The company anticipates an operating margin in the band of 12-12.5%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -15.18% due to these changes.

VGM Scores

Currently, Abercrombie has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Abercrombie has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.