ANF Stock Jumps 12% on Q1 Earnings Beat, 14th Quarter of Straightforward Growth
Abercrombie & Fitch Co. NYSE: ANF rose on Wednesday after the retailer delivered another quarter of better-than-expected earnings and extended its streak of sales growth to 14 consecutive quarters.
Shares of the clothing and accessories retailer, whose core brands include Abercrombie and Hollister, jumped nearly 12% following the report, helping to revive momentum in a stock that has been under severe pressure in recent months.
Abercrombie Extends Winning Streak
Abercrombie reported first-quarter earnings of $1.47 per share, down from $1.59 a year earlier, though the result beat Wall Street expectations of $1.26 per share. Revenue rose 1.5% year over year to $1.1 billion, but missed analyst estimates by $8.2 million. Operating margin was 8% of sales, above the company’s guidance of approximately 7%.
Abercrombie & Fitch Today
Abercrombie & Fitch
- 52 week interval
- $65.45
▼
$133.11
- The P/E ratio
- 8.10
- Target Value
- $116.00
The results were supported by strength in the Americas, where sales increased by 3%, and the Asia-Pacific region (APAC), which posted growth of 24%. The company saw weakness in Europe, the Middle East, and Africa (EMEA), however, as the ongoing conflict in the Middle East weighed on consumer demand.
In terms of brand performance, Abercrombie brands posted a 3% increase in net sales year-over-year, while Hollister reported net sales and a 2% decline in like-for-like sales.
The company also said it has completed the implementation of its advanced merchandising enterprise resource planning (ERP) system, helping to ease investor concerns about additional disruptions related to the transition.
Outlook Remains Strong Despite Headwinds in the Middle East
Abercrombie released its second quarter outlook and reiterated its guidance for the full year. For the second quarter, the company said it expects total sales growth of 2% to 4%, with earnings per diluted share of $1.80 to $2. Operating margin is expected to be around 10%.
For the full year, Abercrombie continues to expect total sales growth of 3% to 5%, earnings per diluted share of $10.20 to $11, and an operating margin of between 12% and 12.5%. The company also continues to expect to repurchase approximately $450 million in shares.
The broker also issued an upgraded outlook on costs, saying it now expects a negative impact of about 20 basis points, an improvement from an earlier forecast of 70 basis points.
During the earnings call, Chief Financial Officer Robert Ball said, “We’re entering mid-2026 with clear priorities, healthy brands, and a strong playbook. We’re operating with discipline and flexibility in a mixed environment, and we’re monitoring our markets, especially in the Middle East, while staying humble and strong on innovation.”
He added, “This is the same model that we have been using to successfully manage many different areas, and we are confident that we can deliver another year of growth and profitability.”
Q1 Benefits Help Restore Momentum After Sharp Drawbacks
The past six months have been volatile for Abercrombie stock. Shares rallied in late November after the company delivered better-than-expected third-quarter results, driving the stock from around $66 before the report to a 52-week high of more than $133 on Jan. 9.
Abercrombie & Fitch Company (ANF) price chart for Wednesday, May 27, 2026
Momentum reversed course shortly thereafter, however, after the company revised its outlook for the full year, indicating overall sales growth and the operating margin may have come in at the low end of its previous forecast. The update sent shares down nearly 18%.
The stock also came under pressure after the company’s fourth-quarter earnings report in early March. Although Abercrombie reported record results for fiscal 2025 with better-than-expected profits and year-over-year revenue growth, investors appeared to be focused on concerns about tax pressures and potential disruptions related to the ERP transition.
Since then, the stock has continued to decline, falling nearly 15% in the past three months. Year to date, the stock is down more than 30%, despite the May 27 jump.
Despite recent pressure, however, Abercrombie shares are still delivering strong long-term gains, up nearly 10% over the past year and 90% over the past five years.
Analysts See Significant High Potential
Wall Street remains bullish on Abercrombie, which currently has an average consensus rating of buy based on eight buy and five hold ratings.
The analyst price estimate of $116 represents a nearly 40% upside from its recent low of $84. Even the lowest price target of $92 suggests that shares may have room to run, while the top target of $149 points to significant upside potential.
The recent pullback may make Abercrombie’s valuation look more attractive to investors. With a price-to-earnings ratio of less than 8, the stock trades at a significant discount to the broader retail industry, with an average P/E ratio of 17.5.
Abercrombie also trades at significantly lower prices than several key competitors, including American Eagle Outfitters Inc. NYSE: AEOwith a P/E ratio of 16, Urban Outfitters Inc. NASDAQ: URBN at 15, and Gap Inc. NYSE: GAPwhich trades at a P/E ratio above 11.
Abercrombie continues to show resilience despite the ongoing storms. With Wall Street still bullish and the stock trading at a discount compared to peers, investors may be eyeing the recent pullback as a potential buying opportunity.
Before you consider Abercrombie & Fitch, you’ll want to hear this.
MarketBeat tracks Wall Street’s top and most effective research analysts and the stocks they recommend to their clients every day. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Abercrombie & Fitch wasn’t on the list.
Although Abercrombie & Fitch currently has an Average Buy rating among analysts, top analysts believe these five stocks are the best.
View Five Stocks Here
Learn the basics of option trading and how to use them to improve returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.
Get This Free Report
