Abercrombie & Fitch Co. (ANF Quick QuoteANF - Free Report) used its first-quarter 2026 earnings call to stress continuity rather than reset. Management held its full-year outlook, pointed to a completed ERP upgrade and said that the business remains on track for another year of sales growth and double-digit operating margin.

That message mattered because the quarter again exposed the main pressure point. Strength in the Americas and APAC offset softness in EMEA, where the Middle East conflict weighed on demand, especially at Hollister.

ANF Holds Full-Year Line

Chief executive officer Fran Horowitz said that the company started 2026 from a position of strength and remains focused on delivering a fourth straight year of sales growth. She emphasized that management is maintaining its full-year outlook on net sales, operating margin and earnings per share despite disruption in EMEA.

Chief financial officer Robert Ball reiterated that stance, keeping fiscal 2026 revenue growth at 3-5% and the operating margin at 12-12.5%. The company also maintained its earnings per share projection of $10.2-$11 and share repurchases of around $450 million.

That steadiness came even as Abercrombie posted mixed headline results versus the Zacks Consensus Estimate. Earnings of $1.47 per share topped the estimate of $1.26, while revenues of $1.11 billion lagged the estimate of $1.12 billion.

Abercrombie & Fitch Company Price, Consensus and EPS Surprise

 

Abercrombie & Fitch Company price-consensus-eps-surprise-chart | Abercrombie & Fitch Company Quote

Abercrombie Leans on Core Markets

Horowitz said that the business continued to see healthy traffic and conversion in the Americas, with balanced demand across brands. She highlighted the U.K. as another constructive market, calling it an example of the company successfully exporting its operating playbook.

On the numbers, Americas sales rose 3% and APAC climbed 24%, while EMEA fell 10%. At the brand level, Abercrombie posted 3% sales growth and Hollister was flat against a strong prior-year comparison.

Management also said that both brands grew in the Americas, supported by positive traffic, modest average unit retail gains and unit growth. That regional performance remained central to the company’s confidence in its outlook.

ANF Says EMEA Pressure Is Contained

The clearest area of investor scrutiny was EMEA. Ball said that the Middle East conflict reduced first-quarter total company sales growth by more than 50 basis points relative to management’s prior outlook, with the impacts skewed heavily toward Hollister.

Analysts repeatedly pressed management on whether promotional intensity had risen in the region and whether the weakness would deepen. Ball and Horowitz have said that the company is responding with tighter inventory control and promotions aligned to demand, while keeping the broader model intact.

The tone was cautious but not alarmed. Management did not offer brand-by-region guidance, yet it said that the second-quarter and full-year views already incorporate continued pockets of softness in EMEA.

Abercrombie Puts ERP Behind It

Another important call theme was the merchandising ERP implementation. Ball said that the temporary pause in certain third-party orders during the cutover cost about 100 basis points of first-quarter top-line growth, but normal operations resumed in April.

Horowitz framed the project as more than a one-quarter disruption. She said that the upgraded platform should support long-term channel and category expansion, new global partnerships, and faster use of data and insights.

In Q&A, management’s tone was notably more emphatic. Ball called the implementation firmly in the rearview mirror and said that it strengthens the foundation for newer channels and categories.

ANF Balances Tariffs, Freight & Spend

Margin commentary also drew close attention. The first-quarter operating margin was 8%, above management’s plan, helped by lower-than-expected tariff rates and favorable freight costs.

Ball said that the updated 2026 outlook assumes 20 basis points of tariff-related gross-margin pressure for the year, improved from 70 basis points in the March outlook. That relief is expected to be offset by higher freight costs and continued investment in marketing and stores.

Management’s message was that the model remains balanced. Modest AUR growth is helping fund brand investments, while share repurchases continue to absorb excess cash. The company bought back $105 million of stock in the quarter and expects at least $150 million more in the second quarter.

Abercrombie Stays on Offense

Horowitz closed the call by stressing that the company is still investing through volatility rather than retreating from it. She pointed to store openings, digital initiatives, new categories and brand collaborations as evidence that management is trying to extend growth rather than defend margins.

The broader posture coming out of the quarter was disciplined and forward-looking. ANF acknowledged regional disruption, but management consistently returned to healthy brands, controlled inventory and a playbook it believes can keep growth intact through 2026.

Zacks Signals for ANF

Abercrombie currently carries a Zacks Rank #3 (Hold), along with a Value Score of A, a Growth Score of B, a Momentum Score of D and a VGM Score of A. Under the Zacks framework, a #3 rank can still be held, and stronger Style Scores improve the stock’s profile, with A grades viewed more favorably than B grades.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The combination of a Value Score of A and a VGM Score of A points to attractive value and balanced style characteristics, though the Momentum Score of D is less supportive in the near term. As Zacks notes, the rank remains the first screen, and that rating can change as earnings estimate revisions adjust after the quarter.