Abercrombie & Fitch Raises Outlook After Strong Q2 Earnings Beat

Abercrombie & Fitch reported a significant earnings beat for the second quarter of fiscal 2026, driven by strong sales growth and a substantial one-time tariff refund, prompting the company to sharply raise its full-year financial outlook. The apparel retailer announced adjusted earnings of $4.17 per diluted share on revenue of $1.27 billion for the quarter ended August 2, 2026, far exceeding Wall Street expectations. The results, announced on August 26, 2026, sent the company's stock soaring in midday trading.

The company's performance was bolstered by a $100 million pretax tariff refund related to a Supreme Court ruling that found certain tariffs enacted under the International Emergency Economic Powers Act were illegal. Chief Financial Officer Robert Ball stated that this refund contributed approximately $1.75 to the diluted earnings per share for the quarter. Despite this one-time benefit, the underlying business showed strength, with the company achieving its 15th consecutive quarter of sales growth. Net sales rose 5% year-over-year, with the Abercrombie brand posting an 8% increase and the Hollister brand growing 2%, both setting second-quarter records.