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The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.12 billion, indicating 2.2% growth from the year-ago quarter’s actual. For quarterly earnings, the consensus mark is pegged at $1.28 per share, implying a decline of 19.5% from the year-ago quarter. The consensus estimate for earnings has moved down by a penny in the past 30 days.
In the last reported quarter, the company’s earnings beat the consensus estimate by 3.4%. ANF has delivered an earnings surprise of 8.4%, on average, in the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie has been benefiting from momentum across its Hollister brand and regions, which have been bolstering sales. ANF marked its thirteenth straight quarter of sales growth, delivering record fourth-quarter and fiscal 2025 net sales, supported by broad-based momentum across regions, brands and channels. Continued digital strength, localized merchandising strategies and the contribution from store openings and remodels have been yielding results.
The Hollister brand has been a key growth driver, benefiting from strong demand, regional gains and strategic execution. Cross-channel traffic and stepped-up marketing efforts are expected to have aided results in the to-be-reported quarter.
Overall, balanced brand strength and geographic diversification continue to support Abercrombie’s growth trajectory. Our model predicts sales at Hollister to grow 4% year over year for the first quarter of fiscal 2026. Our model estimates sales to increase 3.3% in the Americas, 3.9% in EMEA and decline 7.6% in APAC for first-quarter fiscal 2026.
Abercrombie’s quarterly performance is likely to have benefited from its Always Forward plan, brand strength and store-optimization efforts. The company has been strengthening its brand portfolio and enhancing its agile operating model, with the Read & React inventory approach remaining central to execution. Digitally, ANF continues to elevate the customer experience through faster shipping, better product discovery and greater localization, supported by ongoing technology investments to advance omnichannel engagement. ANF’s brands have been strong and are well-positioned to grow across their sizable addressable markets.
For the first quarter of fiscal 2026, net sales are projected to rise 1-3% from the $1.1 billion recorded in the year-ago period. The operating margin for the fiscal first quarter is expected to be 7%. The company expects EPS to be $1.20-$1.30, lower than the $1.59 reported in the year-ago quarter.
Our model expects sales to rise 3% and an adjusted operating margin of 7%, growing 230 bps year over year. We anticipate adjusted earnings per share of $1.29 for first-quarter fiscal 2026.
However, the Abercrombie brand continues to face underlying pressures despite a slight recovery last year. Although the brand returned to growth, with net sales up 4% in fourth-quarter fiscal 2025, its comps dipped 1%. Encouragingly, trends improved sequentially in the fiscal fourth quarter, supported by better product execution, disciplined inventory control and the company’s Read and React inventory model. However, the negative comps highlight that Abercrombie is still in a recovery phase and needs consistent product execution and full-price selling to achieve sustainable growth.
Amid a shifting global trade landscape, heightened tariffs are adding cost pressures for U.S. apparel retailers. Tariffs remain a key structural headwind for Abercrombie, continuing to pressure profitability and cloud the near-term outlook. The company’s outlook assumes the 15% global tariffs announced by the administration, effective Feb. 24, 2026, and are likely to be in effect throughout the end of the fiscal year.
Tariffs are estimated to have a 290-bps negative impact on the operating margin in the fiscal first quarter, somewhat offset by freight tailwinds of about 160 bps. The company is also monitoring potential disruptions from geopolitical factors, including the Middle East conflict, which is expected to create slight sales headwinds.
No tariff refunds or recoveries are expected for fiscal 2026. This remains a persistent drag on margins and a key risk to earnings stability in the near term, which is expected to have impacted the first-quarter fiscal 2026 performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Abercrombie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Abercrombie currently has an Earnings ESP of -0.91% and a Zacks Rank of 3.
ANF’s Stock Performance & Valuation Picture
From a valuation perspective, Abercrombie is trading at a discount relative to industry benchmarks. The company has a forward 12-month price-to-earnings of 6.58X, lower than the Retail - Apparel and Shoes industry’s average of 14.29X.
Image Source: Zacks Investment Research
The recent market movements show that ANF shares have lost 22.1% in the past three months compared with the industry's 16.5% decline.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat:
Ross Stores Inc. (ROST - Free Report) currently has an Earnings ESP of +4.17% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports first-quarter fiscal 2026 results. The consensus mark for ROST’s quarterly revenues is pegged at $5.5 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Ross Stores’ quarterly earnings has moved up by a penny in the past seven days to $1.66 per share. The consensus estimate indicates a rise of 12.9% from the year-ago quarter’s actual. ROST has an average trailing four-quarter earnings surprise of 6.2%.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +2.16% and a Zacks Rank of 3. The company is likely to register growth in the top and bottom lines when it reports third-quarter fiscal 2026 results. The consensus mark for COST’s quarterly revenues is pegged at $69.4 billion, which indicates a 9.7% rise from the figure reported in the prior-year quarter.
The consensus mark for Costco’s quarterly earnings has moved up 0.6% in the past 30 days to $4.91 per share. The consensus estimate indicates an increase of 14.7% from the year-ago quarter’s actual. COST has an average trailing four-quarter earnings surprise of 1.1%.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +10.79% and a Zacks Rank of 3. BBWI is likely to register top and bottom-line declines when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.36 billion, which indicates a 4.2% decline from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up by a penny in the past 30 days to 29 cents per share, which implies a 40.8% decrease from the year-ago quarter's actual. BBWI has an average trailing four-quarter earnings surprise of 1.9%.
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Abercrombie Pre-Q1 Earnings: Will Hollister Strength Aid Performance?
Key Takeaways
Abercrombie & Fitch Co. (ANF - Free Report) is scheduled to report first-quarter fiscal 2026 results on May 27, before the opening bell.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.12 billion, indicating 2.2% growth from the year-ago quarter’s actual. For quarterly earnings, the consensus mark is pegged at $1.28 per share, implying a decline of 19.5% from the year-ago quarter. The consensus estimate for earnings has moved down by a penny in the past 30 days.
In the last reported quarter, the company’s earnings beat the consensus estimate by 3.4%. ANF has delivered an earnings surprise of 8.4%, on average, in the trailing four quarters.
Abercrombie & Fitch Company Price and EPS Surprise
Abercrombie & Fitch Company price-eps-surprise | Abercrombie & Fitch Company Quote
Factors Likely to Impact Results
Abercrombie has been benefiting from momentum across its Hollister brand and regions, which have been bolstering sales. ANF marked its thirteenth straight quarter of sales growth, delivering record fourth-quarter and fiscal 2025 net sales, supported by broad-based momentum across regions, brands and channels. Continued digital strength, localized merchandising strategies and the contribution from store openings and remodels have been yielding results.
The Hollister brand has been a key growth driver, benefiting from strong demand, regional gains and strategic execution. Cross-channel traffic and stepped-up marketing efforts are expected to have aided results in the to-be-reported quarter.
Overall, balanced brand strength and geographic diversification continue to support Abercrombie’s growth trajectory. Our model predicts sales at Hollister to grow 4% year over year for the first quarter of fiscal 2026. Our model estimates sales to increase 3.3% in the Americas, 3.9% in EMEA and decline 7.6% in APAC for first-quarter fiscal 2026.
Abercrombie’s quarterly performance is likely to have benefited from its Always Forward plan, brand strength and store-optimization efforts. The company has been strengthening its brand portfolio and enhancing its agile operating model, with the Read & React inventory approach remaining central to execution. Digitally, ANF continues to elevate the customer experience through faster shipping, better product discovery and greater localization, supported by ongoing technology investments to advance omnichannel engagement. ANF’s brands have been strong and are well-positioned to grow across their sizable addressable markets.
For the first quarter of fiscal 2026, net sales are projected to rise 1-3% from the $1.1 billion recorded in the year-ago period. The operating margin for the fiscal first quarter is expected to be 7%. The company expects EPS to be $1.20-$1.30, lower than the $1.59 reported in the year-ago quarter.
Our model expects sales to rise 3% and an adjusted operating margin of 7%, growing 230 bps year over year. We anticipate adjusted earnings per share of $1.29 for first-quarter fiscal 2026.
However, the Abercrombie brand continues to face underlying pressures despite a slight recovery last year. Although the brand returned to growth, with net sales up 4% in fourth-quarter fiscal 2025, its comps dipped 1%. Encouragingly, trends improved sequentially in the fiscal fourth quarter, supported by better product execution, disciplined inventory control and the company’s Read and React inventory model. However, the negative comps highlight that Abercrombie is still in a recovery phase and needs consistent product execution and full-price selling to achieve sustainable growth.
Amid a shifting global trade landscape, heightened tariffs are adding cost pressures for U.S. apparel retailers. Tariffs remain a key structural headwind for Abercrombie, continuing to pressure profitability and cloud the near-term outlook. The company’s outlook assumes the 15% global tariffs announced by the administration, effective Feb. 24, 2026, and are likely to be in effect throughout the end of the fiscal year.
Tariffs are estimated to have a 290-bps negative impact on the operating margin in the fiscal first quarter, somewhat offset by freight tailwinds of about 160 bps. The company is also monitoring potential disruptions from geopolitical factors, including the Middle East conflict, which is expected to create slight sales headwinds.
No tariff refunds or recoveries are expected for fiscal 2026. This remains a persistent drag on margins and a key risk to earnings stability in the near term, which is expected to have impacted the first-quarter fiscal 2026 performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Abercrombie this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Abercrombie currently has an Earnings ESP of -0.91% and a Zacks Rank of 3.
ANF’s Stock Performance & Valuation Picture
From a valuation perspective, Abercrombie is trading at a discount relative to industry benchmarks. The company has a forward 12-month price-to-earnings of 6.58X, lower than the Retail - Apparel and Shoes industry’s average of 14.29X.
Image Source: Zacks Investment Research
The recent market movements show that ANF shares have lost 22.1% in the past three months compared with the industry's 16.5% decline.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat:
Ross Stores Inc. (ROST - Free Report) currently has an Earnings ESP of +4.17% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports first-quarter fiscal 2026 results. The consensus mark for ROST’s quarterly revenues is pegged at $5.5 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Ross Stores’ quarterly earnings has moved up by a penny in the past seven days to $1.66 per share. The consensus estimate indicates a rise of 12.9% from the year-ago quarter’s actual. ROST has an average trailing four-quarter earnings surprise of 6.2%.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +2.16% and a Zacks Rank of 3. The company is likely to register growth in the top and bottom lines when it reports third-quarter fiscal 2026 results. The consensus mark for COST’s quarterly revenues is pegged at $69.4 billion, which indicates a 9.7% rise from the figure reported in the prior-year quarter.
The consensus mark for Costco’s quarterly earnings has moved up 0.6% in the past 30 days to $4.91 per share. The consensus estimate indicates an increase of 14.7% from the year-ago quarter’s actual. COST has an average trailing four-quarter earnings surprise of 1.1%.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +10.79% and a Zacks Rank of 3. BBWI is likely to register top and bottom-line declines when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.36 billion, which indicates a 4.2% decline from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up by a penny in the past 30 days to 29 cents per share, which implies a 40.8% decrease from the year-ago quarter's actual. BBWI has an average trailing four-quarter earnings surprise of 1.9%.