Abercrombie & Fitch shares surge 35% on tariff refund and earnings beat

Abercrombie & Fitch shares surged nearly 35 percent on August 27, 2026, reaching their highest level in 18 months after the retailer reported second-quarter earnings that dramatically exceeded Wall Street expectations, driven by a substantial tariff refund and sustained revenue growth. The stock opened at $108.90 and climbed to an intraday peak of $154.58, a price not seen since January 2025, before closing with a gain of approximately 35 percent.

The company's second-quarter results were bolstered by a $100 million refund from tariff payments, which significantly boosted operational profitability. Operating income rose to $253 million, up from $207 million in the same quarter of the prior year. Adjusted earnings per share came in at $4.17, more than double the analyst consensus estimate of $1.99 compiled by FactSet. Net sales for the quarter reached $1.3 billion, a 5 percent increase year over year, marking the retailer's 15th consecutive quarter of sales growth.

The tariff refunds followed the Supreme Court's decision to invalidate President Trump's Liberation Day tariff initiative. The U.S. Court of International Trade subsequently ruled that companies that had paid these...