Shares of Abercrombie & Fitch Co (NYSE:ANF) are trading lower Thursday afternoon, off their 52-week high, after a massive post-earnings rally on Wednesday. Wall Street continues to digest a blowout second-quarter financial report, a $100 million tariff windfall and an upgraded full-year outlook.
- Abercrombie & Fitch stock is building positive momentum. Why is ANF stock fluctuating?
Record Q2 Performance Driven By Tariff Refund Windfall and Upgraded Guidance
Thursday’s trading builds directly on the momentum from Wednesday, when the apparel retailer delivered its 15th consecutive quarter of top-line growth.
ANF reported record second-quarter net sales of $1.27 billion, up 5% year-over-year, alongside diluted adjusted EPS of $4.17 that shattered consensus estimates near $1.99 per share. Profitability benefited significantly from roughly $100 million in IEEPA tariff refunds, which provided a 790 basis point tailwind and propelled operating margins to 19.9%.
Supported by broad-based brand strength and strong cash generation, management raised its full-year fiscal 2026 sales growth forecast to approximately 5% and boosted its full-year EPS guidance to a range of $13.10 to $13.60.
Additionally, several major Wall Street firms raised their price targets on Thursday, citing strong third-quarter momentum across both the Abercrombie and Hollister brands.
Management Commentary Highlights Operational Balance and Brand Execution
During the second-quarter earnings conference call on Wednesday, Chief Executive Officer Fran Horowitz highlighted the company’s execution across its portfolio:
"I’m excited to report we delivered our 15th consecutive quarter of top line growth on record second quarter net sales… Sales growth was above the expectation we set in May and was balanced across regions and brands, with both Abercrombie and Hollister brands achieving record second quarter net sales."
ANF Shares Edge Lower Thursday
ANF Price Action: Abercrombie & Fitch shares were down 1.20% at $145.98 at the time of publication on Thursday. The stock is trading near its 52-week high of $154.58, according to Benzinga Pro data.
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