Abercrombie Forecasts 3–5% Sales Growth for 2026, Tariffs to Cut Q1 Margins
Abercrombie & Fitch logged record Q4 net sales of $1.67 billion (up 5%) but warned that tariffs will trim first-quarter operating margins by 290 basis points. The company forecasts fiscal 2026 net sales growth of 3–5%, operating margins of 12–12.5% and EPS of $10.20–$11 versus 6.2% sales growth last year.
1. Q4 Performance
Abercrombie & Fitch delivered record Q4 net sales of $1.67 billion, a 5% year-over-year increase, marking its thirteenth consecutive quarter of growth. Comparable sales rose 1%, operating income decreased to $236 million from $256 million last year, and operating margin contracted to 14.1% from 16.2%.
2. Fiscal 2026 Guidance
The company forecasts full-year net sales growth of 3% to 5%, operating margins between 12% and 12.5%, and net income per diluted share of $10.20 to $11. First-quarter sales are expected to rise 1% to 3%, with operating margins around 7%.
3. Tariff Headwinds
Management anticipates a 290-basis-point drag on first-quarter operating margins due to tariff-related costs and flagged ongoing tariff pressure as a key near-term risk to profitability and margin expansion.