Abercrombie & Fitch Q1 Sales Hit $1.1B with EPS $1.47, Shares Repurchased $105M
ANF•Net sales reached $1.1 billion in Q1, up 2% year-over-year, with operating margin of 8% and EPS of $1.47, while $105 million in share repurchases equaled 3% of shares outstanding. Americas sales rose 3% and APAC soared 24% offset by a 10% EMEA decline as the company targets 3–5% full-year growth.
1. Q1 Financial Highlights
Abercrombie & Fitch posted record Q1 net sales of $1.1 billion (up 2% year-over-year), operating margin of 8% and EPS of $1.47, beating internal targets. The company repurchased $105 million of shares, representing 3% of its outstanding stock.
2. Regional Sales Performance
Sales in the Americas rose 3% while APAC surged 24%, offset by a 10% decline in EMEA driven by regional conflicts. Comparable sales were flat for Abercrombie Brands and down 2% at Hollister.
3. Outlook and Guidance
Management projects full-year net sales growth of 3–5% and operating margins of 12–12.5%, with Q2 net sales estimated at 2–4% growth and operating margin around 10%. Capital expenditures are expected at $225 million for the year with 50 new stores and 20 closures.
4. Inventory and ERP Implementation
Inventory levels were down 2% at cost despite low single-digit unit growth, and cash holdings reached $594 million providing nearly $1 billion liquidity. The newly launched merchandising ERP is expected to support future channel and category expansion.
