Abercrombie Q4 EPS $3.68 Beats, Sales Up 5%; Warns $40M Tariff Hit
Abercrombie & Fitch posted fourth-quarter EPS of $3.68, topping estimates, with net sales of $1.67 billion up 5% on record 13th consecutive quarterly growth and a 6% lift at Hollister. The company forecast a $40 million tariff headwind for fiscal 2026 and reduced first-quarter EPS guidance to $1.20-1.30 from $1.59 a year earlier.
1. Q4 Financial Results
Abercrombie & Fitch reported fourth-quarter adjusted EPS of $3.68, surpassing the $3.56 estimate, while net sales rose 5% to $1.67 billion. Comparable sales gained 1%, marking the 13th consecutive quarter of growth, and operating income held at $236 million despite higher selling expenses.
2. Brand and Regional Performance
Sales in the Americas climbed 5% to $1.383 billion, EMEA sales rose 8% to $241.4 million and APAC increased 9% to $44.5 million. The Hollister brand delivered a 6% sales increase to $863.3 million, while the Abercrombie brand contributed $806.5 million with comps down 1%.
3. Tariff Impact on Margins
Management attributed a 360 basis point operating-margin decline partly to about $40 million of tariff costs for fiscal 2026, narrowing the quarter’s margin to 14.1% from 16.2% a year earlier.
4. Outlook and Guidance
For fiscal first quarter 2026, the company expects sales to grow 1-3% year-over-year to about $1.11 billion and EPS of $1.20-1.30, down from $1.59 a year ago. Full-year guidance calls for 3-5% net-sales growth to $5.42-5.53 billion, an operating margin of 12-12.5% and EPS between $10.20 and $11.00.