Home / Business and Economy / Abercrombie Hits Record Q1 Sales Amid Global Challenges
Abercrombie Hits Record Q1 Sales Amid Global Challenges
28 May
Summary
- Abercrombie reported record Q1 net sales of $1.1bn, marking 14 consecutive quarters of growth.
- Sales growth was driven by the Americas and APAC, while EMEA experienced a decline.
- The company reaffirmed its full-year sales and operating margin outlook for FY 2026.
Abercrombie & Fitch has reported record net sales of $1.1 billion for its first quarter, marking its fourteenth consecutive quarter of growth. Sales increased by 2% compared to the same period last year.
The company's performance was primarily driven by robust growth in the Americas, with a 3% increase, and a significant 24% surge in the Asia-Pacific region. However, sales in the Europe, Middle East, and Africa (EMEA) region declined by 10%, a trend Abercrombie attributed to the ongoing conflict in the Middle East impacting Hollister Brands.
Despite a decrease in operating income to $89 million from $102 million the previous year, Abercrombie's operating margin reached 8.0%, and diluted earnings per share were $1.47, exceeding initial expectations. The Abercrombie brand itself saw a 3% growth, while the Hollister brand remained flat.
Looking ahead, Abercrombie anticipates net sales growth between 3% and 5% for the full fiscal year 2026. The company is maintaining its full-year sales and operating margin outlook, expressing confidence in its strategy to deliver long-term shareholder value through continued investment in brands and customer experience.
