Overview
- On Wednesday, May 27, Abercrombie & Fitch reported adjusted EPS of $1.47 for Q1, topping analyst forecasts while net sales rose about 2% to roughly $1.11 billion and comparable sales fell 1%.
- Results showed a sharp regional split with APAC sales up about 24%, Americas up roughly 3%, and EMEA down about 10%, which management tied to weaker consumer demand as the Middle East conflict intensified and said it is cutting inventory and marketing in that region.
- Operating income fell to about $89 million and operating margin narrowed to 8.0% from 9.3% a year earlier as freight, tariffs and investment spending weighed on profitability.
- The company repurchased $105 million of stock in the quarter, reiterated a roughly $450 million buyback plan for the year, and said a recent U.S. Supreme Court ruling reduced expected tariff pressure while it pursues about $100 million in duty refunds.
- Management highlighted operational moves that include an ERP upgrade, pilot AI tools and tighter promotional control, and it maintained full‑year guidance for 3%–5% sales growth and $10.20–$11.00 EPS, which investors parsed as a sign of confidence and drove shares higher.