Abercrombie & Fitch Company
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Item 1. Business
GENERAL
Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as the “Company”), is a global, digitally-led, omnichannel retailer. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements.
The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments and therefore are included as a reconciling item between segment and total operating income.
The Company’s brand families include Abercrombie brands and Hollister brands. These brands share a commitment to offering unique products of enduring quality and exceptional comfort that allow customers around the world to express their own individuality and style.
The Company’s fiscal year ends on the Saturday closest to January 31. This typically results in a fifty-two-week year, but occasionally gives rise to an additional week, resulting in a fifty-three-week year, as was the case in Fiscal 2023. Fiscal years are designated in the Consolidated Financial Statements and Notes thereto, as well as the remainder of this Annual Report on Form 10-K, by the calendar year in which the fiscal year commenced. All references herein to the Company’s fiscal years are as follows:
| Fiscal year | Year ended / ending | Number of weeks | ||||||||||
| Fiscal 2023 | February 3, 2024 | 53 | ||||||||||
| Fiscal 2024 | February 1, 2025 | 52 | ||||||||||
| Fiscal 2025 | January 31, 2026 | 52 | ||||||||||
| Fiscal 2026 | January 30, 2027 | 52 | ||||||||||
For additional information about the Company’s business, see “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS,” as well as “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA,” of this Annual Report on Form 10-K.
SEGMENT AND BRAND INFORMATION
The Company determines its segments after taking into consideration a variety of factors, including its organizational structure and the basis that it uses to allocate resources and assess performance. The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; EMEA; and APAC.
The Company’s segments are as follows:
Region | Description | ||||||
Americas | The Americas segment includes operations in North America and South America | ||||||
EMEA | The EMEA segment includes operations in Europe, the Middle East and Africa | ||||||
APAC | The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. | ||||||
The Company’s brand families include Abercrombie brands and Hollister brands, each sharing a commitment to offer products of enduring quality and exceptional comfort that support global customers on their journey to being and becoming who they are.
Brand family | Description | ||||||
Abercrombie | Abercrombie strives to make every day feel exceptional, creating a sense of getaway through its quality apparel, accessories and fragrance crafted for every occasion. The Abercrombie brand family connects with customers through various supporting brands and assortment collections, including, but not limited to, Abercrombie & Fitch, abercrombie kids, and Your Personal Best (YPB). | ||||||
Hollister | Hollister creates quality apparel, accessories and fragrance made for capturing moments, creating memories and being unapologetically you. The Hollister brand family connects with customers through various supporting brands and assortment collections including, but not limited to, Hollister and Gilly Hicks. | ||||||
Additional information concerning the Company’s segment and geographic information is contained in Note 18, “SEGMENT REPORTING” of the Notes to Consolidated Financial Statements included in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this Annual Report on Form 10-K.
| Abercrombie & Fitch Co. | 4 | 2025 Form 10-K |
STRATEGY AND KEY BUSINESS PRIORITIES
The Company remains committed to, and confident in, its vision of being a global, digitally-led, omnichannel retailer and continues to evaluate corporate growth opportunities and initiatives that support this vision.
Over the last several years, A&F Co. has worked to successfully transform its brands, business and culture, while delivering on its financial commitments. As the Company looks forward, it’s focused on evaluating opportunities that continue to deliver sustainable, profitable growth. The Company expects to:
•Deliver Consistent Global Growth Across Brands by investing in owned-and-operated channels with the expectation of continued net sales growth, including through net new store openings, digital fulfillment, and marketing.
•Expand Channels and Categories by increasing net sales growth in new and select markets through the use of franchise, wholesale, and licensing partnerships. The Company also plans to expand into new, adjacent product categories that resonate with each brand’s target customer.
•Execute a Multifaceted Strategy that includes evaluating sourcing footprint, adjusting pricing or promotions, and expense reduction initiatives to stabilize product and operating costs in attempt to meaningfully mitigate external cost pressure, including near-term tariff impacts.
•Enhance and Modernize our Key Systems and Leverage Technology to support operational productivity and to improve the customer journey.
•Execute Financial Discipline to maintain double-digit operating margins and expand net income per diluted share.
The Company’s strategic priorities continue to evolve based on changing consumer demands and new strategic opportunities, and management reviews and prioritizes investments and strategic focus areas to address such demands and opportunities.
OVERVIEW OF OPERATIONS
Omnichannel Initiatives
As customer shopping preferences continue to evolve and customers increasingly shop across multiple channels, the Company aims to create best-in-class customer experiences and grow total company profitability by delivering improvements through a continuous test-and-learn approach. Digital platforms remain a driver for customer engagement and sales, with a majority of sales continuing to be through digital channels for the Abercrombie brands. Despite this concentration in digital channels, stores continue to comprise a majority of sales for the Hollister brand’s customer. Additionally, stores continue to be an important part of our customers’ omnichannel experience. The Company believes that the customers’ shopping experience is improved by its offering of omnichannel capabilities, which include purchase-online-pickup-in-store, ship-from-store, and cross-channel returns. These features allow our customers ease of access to shop the brands’ and a seamless transition between in-store and online offerings.
Digital Operations
In order to continuously improve the customer experience, including providing a more seamless and consistent shopping experience across channels, the Company continues to invest in its digital infrastructure. Such investments have included replacement of our merchandising ERP system, which went live in March 2026. Refer to “ITEM 1A. RISK FACTORS - Our inability to successfully manage our multi-year ERP system transformations, including the implementation of our new merchandising and human capital management systems, as well as any future system transformations, may adversely affect our business and results of operations or the effectiveness of our internal controls over financial reporting.” of this Annual Report on Form 10-K for further discussion.
As part of its digital operations, the Company utilizes emerging technologies, including AI, to support business processes and the customer experience. The Company has the capability to ship merchandise to customers in more than 105 countries and process transactions in 21 currencies and through 17 forms of payment globally. The Company operates desktop and mobile websites for its brands globally, which are available in various local languages. The Company also operates four mobile applications that provide an enhanced mobile shopping experience to the customer and provide us with customer insights. The Company continues to develop and invest its mobile capabilities as mobile engagement continues to grow, with over 89% of the Company’s digital traffic generated from mobile devices in Fiscal 2025. In addition, in its efforts to expand its global brand reach, the Company also partners with certain third-party e-commerce platforms.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read together with the Company’s Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q in “Item 1. Financial Statements (Unaudited),” to which all references to Notes in MD&A are made.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Quarterly Report on Form 10-Q or made by the Company or its management and authorized spokespeople involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company’s and management’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “should,” “are confident,” “will,” “could,” “outlook,” or the negative versions of those words or other comparable words, and similar expressions may identify forward-looking statements. Future economic and industry trends that could potentially impact revenue and profitability are difficult to predict. Therefore, there can be no assurance that the forward-looking statements included in this Quarterly Report on Form 10-Q will prove to be accurate. Factors that could cause results to differ from those expressed in the Company’s forward-looking statements include, but are not limited to, the risks described or referenced in Part I, Item 1A. “Risk Factors,” in the Company’s Fiscal 2025 Form 10-K and otherwise in our subsequent reports and filings with the SEC, as well as the following:
•risks and uncertainties related to global trade policy and international trade disputes, including the impact of the imposition or threat of imposition of new or increased tariffs or modification of existing tariffs by the United States or foreign governments, uncertainty regarding the timing and implementation of changes to existing tariff programs, the availability, timing, and amount of tariff refunds, or other changes to trade policies or arrangements;
•risks related to changes in global economic and financial conditions, including inflation, and resulting impacts on consumer confidence and spending, and on our operating results, financial condition, and expense management;
•risks and uncertainties related to the effectiveness and optimization of recently implemented enterprise resource planning (“ERP”) systems, including the ability to realize expected benefits and manage post-implementation activities;
•risks related to our global operations and supply chain, including political or climate-related conditions in the countries where we sell or source our products, and the resulting impacts on transportation and freight costs;
•risks related to the geopolitical landscape and ongoing armed conflicts, acts of terrorism, mass casualty events, social unrest, civil disturbance or disobedience, including regional conflicts in the Middle East, and the impact of such conflicts or events on international trade, consumer demand, supplier delivery, energy costs, or freight costs;
•risks related to natural disasters and other unforeseen catastrophic events;
•risks related to our failure to engage our customers, anticipate customer demand, expectations, and changing fashion trends, and manage our inventory and product delivery;
•risks related to our failure to operate effectively in a highly competitive and constantly evolving industry;
•risks related to our ability to successfully invest in and execute on our customer, digital and omnichannel initiatives;
•risks related to our ability to successfully execute technology initiatives and partnerships, including those relating to artificial intelligence (“AI”) technology;
•risks related to our ability to execute on, and maintain the success of, our current or any future strategic and growth initiatives, including risks related to the review of strategic alternatives for our APAC business;
•risks related to the effects of seasonal fluctuations on our sales and our performance during the back-to-school and holiday selling seasons;
•risks related to fluctuations in foreign currency exchange rates;
•risks related to fluctuations in our tax obligations and effective tax rate, including as a result of earnings and losses generated from our global operations, may result in volatility in our results of operations;
•risks and uncertainty related to adverse public health developments;
•risks related to cybersecurity threats and privacy or data security breaches, and the potential loss or disruption of our information technology systems;
•risks related to the continued validity of our trademarks and our ability to protect our intellectual property;
•risks associated with corporate responsibility, including those associated with climate change;
•risks related to reputational harm to the Company, its officers, and directors;
•risks related to actual or threatened litigation; and
•uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing laws and regulations.
| Abercrombie & Fitch Co. | 23 | 2026 2Q Form 10-Q |
In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other person, that the objectives of the Company will be achieved. The forward-looking statements included herein are based on information presently available to the management of the Company. Except as may be required by applicable law, the Company assumes no obligation to publicly update or revise its forward-looking statements, including any financial targets and estimates, whether as a result of new information, future events, or otherwise. As used herein, “Abercrombie & Fitch Co.,” “A&F,” the “Company,” “we,” “us,” “our,” and similar terms include Abercrombie & Fitch Co. and its subsidiaries, unless the context indicates otherwise.
INTRODUCTION
MD&A is provided as a supplement to the accompanying Condensed Consolidated Financial Statements and notes thereto to help provide an understanding of the Company’s results of operations, financial condition, and liquidity. MD&A is organized as follows:
•Current Trends and Outlook. A discussion related to certain of the Company’s focus areas for the current fiscal year and a discussion of certain risks and challenges, as well as a summary of the Company’s performance for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025.
•Results of Operations. An analysis of certain components of the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025.
•Liquidity and Capital Resources. A discussion of the Company’s financial condition, changes in financial condition and liquidity as of August 1, 2026, which includes (i) an analysis of financial condition as compared to January 31, 2026; (ii) an analysis of changes in cash flows for the twenty-six weeks ended August 1, 2026, as compared to the twenty-six weeks ended August 2, 2025; and (iii) an analysis of liquidity, including availability under the Company’s ABL Facility (as defined below), the Company’s share repurchase program, and covenant compliance.
•Recent Accounting Pronouncements. A discussion, as applicable, of the recent accounting pronouncements that the Company has adopted or is currently evaluating, including the dates of adoption and/or expected dates of adoption, and their anticipated effects on the Company’s Condensed Consolidated Financial Statements.
•Critical Accounting Estimates. A discussion of the accounting estimates considered to be important to the Company’s results of operations and financial condition, which typically require significant judgment and estimation on the part of management in their application.
•Non-GAAP Financial Measures. MD&A provides a discussion of certain financial measures that have been determined to not be presented in accordance with GAAP. This section includes certain reconciliations between GAAP and non-GAAP financial measures and additional details on non-GAAP financial measures, including information as to why the Company believes that the non-GAAP financial measures provided within MD&A are useful to investors.
| Abercrombie & Fitch Co. | 24 | 2026 2Q Form 10-Q |
OVERVIEW
Business summary
The Company is a global, digitally-led omnichannel retailer. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements.
The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included as a reconciling item between segment and total operating income.
The Company operates a family of brands, including Abercrombie brands and Hollister, with a shared commitment to offering products of enduring quality and exceptional comfort that support global customers on their journey to being and becoming who they are.
The Company’s fiscal year ends on the Saturday closest to January 31. All references herein to the Company’s fiscal years are as follows:
| Fiscal year | Year ended/ending | Number of weeks | ||||||||||
| Fiscal 2025 | January 31, 2026 | 52 | ||||||||||
| Fiscal 2026 | January 30, 2027 | 52 | ||||||||||
| Fiscal 2027 | January 29, 2028 | 52 | ||||||||||
Seasonality
Historically, the Company’s operations have been seasonal in nature and consist of two principal selling seasons: the spring season, which includes the first and second fiscal quarters (“Spring”), and the fall season, which includes the third and fourth fiscal quarters (“Fall”). Due to the seasonal nature of the retail apparel industry, the results of operations for any current period are not necessarily indicative of the results expected for the full fiscal year, and the Company could have significant fluctuations in certain asset and liability accounts. The Company historically experiences its greatest sales activity during the Fall season due to back-to-school and holiday sales periods, respectively.
CURRENT TRENDS AND OUTLOOK
Focus areas for Fiscal 2026
Over the last several years, A&F has worked to successfully transform its brands, business and culture, while delivering on its financial commitments. As the Company looks forward, it is focused on evaluating opportunities that continue to deliver sustainable, profitable growth. The Company expects to:
•Deliver Consistent Global Growth Across Brands by investing in owned-and-operated channels with the expectation of continued net sales growth, including through net new store openings, digital fulfillment, and marketing
•Expand Channels and Categories by increasing net sales growth in new and select markets through the use of franchise, wholesale, and licensing partnerships. The Company also plans to expand into new, adjacent product categories that resonate with each brand’s target customer.
•Execute a Multifaceted Strategy that includes evaluating sourcing footprint, adjusting pricing or promotions, and expense reduction initiatives to stabilize product and operating costs in attempt to meaningfully mitigate external cost pressure, including near-term tariff impacts.
•Enhance and Modernize our Key Systems and Leverage Technology to support operational productivity and to improve the customer journey.
•Execute Financial Discipline to maintain double-digit operating margins and expand net income per diluted share.
Tariffs
Changes in trade policy and related uncertainty, including enacted and proposed tariffs affecting countries from which we source a significant portion of our merchandise, have resulted in a dynamic and unpredictable trade environment that has adversely impacted our business and operations. These impacts include volatility in duties on merchandise sourced from impacted countries and added complexity to our supply chain and sourcing processes.
While certain tariffs have been struck down, modified, or replaced, other tariffs remain in effect or have subsequently been imposed under various trade authorities, including tariffs imposed pursuant to Section 301 of the Trade Act of 1974, and additional tariffs may be imposed in the future. Such tariffs may increase the cost of merchandise or materials sourced from impacted countries, adversely affect our supply chain, and negatively impact our results of operations.
| Abercrombie & Fitch Co. | 25 | 2026 2Q Form 10-Q |
During the thirteen weeks ended August 1, 2026, the Company recognized approximately $100 million in refunds plus accrued interest of $3 million of IEEPA tariffs previously paid. The refunds received were reflected as a reduction of cost of sales, with the accrued interest reflected in interest income in the Condensed Consolidated Statements of Operations and Comprehensive Income. Subsequent to August 1, 2026, the Company received approximately $18 million in refunds related to IEEPA tariffs, of which approximately $4 million had been recognized as a receivable as of the end of the second quarter of 2026. The remaining $14 million received will be reflected as a reduction of cost of sales in the third quarter of 2026, with accrued interest reflected in interest income, in the Condensed Consolidated Statements of Operations and Comprehensive Income.
The Company continues to evaluate the impact of tariffs and other trade policies on its business and is executing against our playbook of mitigation strategies, which includes evaluating supply chain footprint changes, supply chain vendor negotiations, pursuing operating expense reductions, and determining ways to increase average unit retail (“AUR”).
Current macroeconomic conditions and global events
Macroeconomic conditions such as a volatile interest rate environment, ongoing inflation, the geopolitical landscape, and foreign exchange rate fluctuations, continue to impact the global economy. Recently, the global markets have experienced fluctuations in fuel and other energy related costs, which could lead to greater uncertainty regarding the overall economic environment and consumer spending. During periods of unfavorable economic conditions, consumers may reallocate available discretionary spending or determine that they have fewer funds available for discretionary spending, which may also adversely impact demand for our products. Continued inflationary pressures could further impact expenses and have a longer-term impact on our ability to maintain satisfactory margins.
In addition, as a global multi-brand omnichannel specialty retailer, with operations in North America, Europe, the Middle East, and Asia, among other regions, we are exposed to global events and geopolitical developments, including armed conflicts in certain regions, that may adversely impact our operations and consumer demand in affected markets. For example, armed conflicts in the Middle East have disrupted, and may continue to affect, consumer demand patterns in affected markets. Management continues to monitor global events and assess the potential impacts that these and similar events may have on the business in future periods. These events could further adversely affect its business and results of operations.
Supply chain disruptions
Global supply chain conditions continue to be affected by disruptions in major maritime routes, higher transportation and logistics costs, and increased competition for supply chain capacity due to uncertainty in the global trade environment and ongoing armed conflicts. For example, armed conflicts in the Middle East have contributed to elevated freight rates and longer transit times compared to historical levels, and prolonged or escalating conflicts could result in additional supply chain disruption, including higher energy and transportation costs (such as fuel related charges), shipping delays, or increased air freight usage to mitigate inventory delays.
Store Count
As of August 1, 2026, the Company operated 846 retail stores and the Company’s franchisees operated 61 franchise stores across the Company’s regions and brands as detailed in the table below.
| Americas | EMEA | APAC | Total | |||||||||||||||||||
Company-owned | ||||||||||||||||||||||
Abercrombie | 246 | 39 | 30 | 315 | ||||||||||||||||||
Hollister | 405 | 102 | 24 | 531 | ||||||||||||||||||
Company-owned total | 651 | 141 | 54 | 846 | ||||||||||||||||||
Franchise | ||||||||||||||||||||||
| Abercrombie | 19 | 9 | 9 | 37 | ||||||||||||||||||
| Hollister | 9 | 10 | 5 | 24 | ||||||||||||||||||
Franchise total | 28 | 19 | 14 | 61 | ||||||||||||||||||
Total | 679 | 160 | 68 | 907 | ||||||||||||||||||
For Company-owned gross square footage by geographic region and brand as of January 31, 2026, and February 1, 2025, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Fiscal 2025 Form 10-K.
| Abercrombie & Fitch Co. | 26 | 2026 2Q Form 10-Q |
Global store network modernization and growth
The Company has a goal of finding the right size, right location and right economics for omni-enabled stores that cater to local customers. The Company continues to use data to inform its focus on aligning store square footage with digital penetration, and has delivered new store experiences across brands during Fiscal 2026.
During the twenty-six weeks ended August 1, 2026, the Company opened 24 new stores, remodeled 40 stores and right-sized five stores, while closing seven stores. As part of this focus, the Company’s store investment plan includes delivering approximately 30 net store openings during Fiscal 2026 consisting of opening approximately 50 new stores, while closing approximately 20 stores, pending negotiations with our landlord partners. Additionally, the Company expects approximately 80 remodels and right-sizes during Fiscal 2026, pending negotiations with our landlord partners.
Future closures could be completed through natural lease expirations, while certain other leases include early termination options that can be exercised under specific conditions. The Company may also elect to exit or modify other leases, and could incur charges related to these actions.
For a discussion of material risks that have the potential to cause our actual results to differ materially from our expectations, refer to Part I, “Item 1A. Risk Factors” on the Fiscal 2025 Form 10-K.
Summary of results
The following provides a summary of results for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025:
| GAAP | Non-GAAP (1) | |||||||||||||||||||||||
| Thirteen Weeks Ended | August 1, 2026 | August 2, 2025 | August 1, 2026 | August 2, 2025 | ||||||||||||||||||||
Net sales (in thousands) | $ | 1,266,689 | $ | 1,208,560 | ||||||||||||||||||||
| Change in net sales | 5 | % | 7 | % | ||||||||||||||||||||
Comparable sales (2) | — | % | 3 | % | ||||||||||||||||||||
Operating income (in thousands) | $ | 252,700 | $ | 206,658 | $ | 168,084 | ||||||||||||||||||
Operating income margin | 19.9 | % | 17.1 | % | 13.9 | % | ||||||||||||||||||
Net income attributable to A&F (in thousands) | $ | 183,720 | $ | 141,383 | $ | 112,758 | ||||||||||||||||||
Net income per diluted share attributable to A&F | 4.17 | 2.91 | 2.32 | |||||||||||||||||||||
| Twenty-Six Weeks Ended | ||||||||||||||||||||||||
Net sales (in thousands) | $ | 2,380,510 | $ | 2,305,871 | ||||||||||||||||||||
| Change in net sales | 3 | % | 7 | % | ||||||||||||||||||||
Comparable sales (2) | — | % | 4 | % | ||||||||||||||||||||
Operating income (in thousands) | $ | 341,497 | $ | 308,191 | $ | 269,617 | ||||||||||||||||||
Operating income margin | 14.3 | % | 13.4 | % | 11.7 | % | ||||||||||||||||||
Net income attributable to A&F (in thousands) | $ | 250,854 | $ | 221,796 | $ | 193,171 | ||||||||||||||||||
Net income per diluted share attributable to A&F | 5.59 | 4.47 | 3.90 | |||||||||||||||||||||
(1)Discussion as to why the Company believes that these non-GAAP financial measures are useful to investors and a reconciliation of the non-GAAP measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided below under “NON-GAAP FINANCIAL MEASURES.”
(2)Comparable sales are calculated on a constant currency basis and exclude revenue other than store and digital sales. Refer to the discussion below in “NON-GAAP FINANCIAL MEASURES,” for further details on the comparable sales calculation.
Certain components of the Company’s Condensed Consolidated Balance Sheets as of August 1, 2026 and January 31, 2026 were as follows:
| (in thousands) | August 1, 2026 | January 31, 2026 | ||||||||||
| Cash and equivalents | $ | 627,716 | $ | 759,540 | ||||||||
| Marketable securities | 10,283 | 25,036 | ||||||||||
| Inventories | 591,662 | 601,218 | ||||||||||
Certain components of the Company’s Condensed Consolidated Statements of Cash Flows for the twenty-six-week periods ended August 1, 2026 and August 2, 2025 were as follows:
| (in thousands) | August 1, 2026 | August 2, 2025 | ||||||||||
| Net cash provided by operating activities | $ | 313,401 | $ | 112,893 | ||||||||
| Net cash used for investing activities | (114,357) | (31,943) | ||||||||||
| Net cash used for financing activities | (329,816) | (290,713) | ||||||||||
| Abercrombie & Fitch Co. | 27 | 2026 2Q Form 10-Q |
RESULTS OF OPERATIONS
The estimated basis point (“BPS”) change disclosed throughout this Results of Operations section has been rounded based on the change in the percentage of net sales.
Net sales
Net sales by segment are presented by attributing revenues to a physical store location or geographical region that fulfills the order. The Company’s net sales by reportable segment for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025 were as follows:
| Thirteen Weeks Ended | ||||||||||||||||||||||||||||||||||
| (in thousands, except ratios) | August 1, 2026 | August 2, 2025 | $ Change | % Change | Comparable Sales (1) | |||||||||||||||||||||||||||||
| By segment: | ||||||||||||||||||||||||||||||||||
| Americas | $ | 1,020,537 | $ | 974,200 | $ | 46,337 | 5 | % | 1 | % | ||||||||||||||||||||||||
| EMEA | 201,990 | 197,210 | 4,780 | 2 | (4) | |||||||||||||||||||||||||||||
| APAC | 44,162 | 37,150 | 7,012 | 19 | 13 | |||||||||||||||||||||||||||||
| Total | $ | 1,266,689 | $ | 1,208,560 | $ | 58,129 | 5 | — | ||||||||||||||||||||||||||
| Twenty-Six Weeks Ended | ||||||||||||||||||||||||||||||||||
| (in thousands, except ratios) | August 1, 2026 | August 2, 2025 | $ Change | % Change | Comparable Sales (1) | |||||||||||||||||||||||||||||
| By segment: | ||||||||||||||||||||||||||||||||||
| Americas | $ | 1,920,481 | $ | 1,849,004 | $ | 71,477 | 4 | % | 1 | % | ||||||||||||||||||||||||
| EMEA | 369,363 | 382,246 | (12,883) | (3) | (8) | |||||||||||||||||||||||||||||
| APAC | 90,666 | 74,621 | 16,045 | 22 | 14 | |||||||||||||||||||||||||||||
| Total | $ | 2,380,510 | $ | 2,305,871 | $ | 74,639 | 3 | — | ||||||||||||||||||||||||||
(1)Comparable sales are calculated on a constant currency basis. Refer to “NON-GAAP FINANCIAL MEASURES,” for further details on the comparable sales calculation.
For the second quarter of Fiscal 2026, net sales increased 5% on a reported basis and were flat on a comparable sales basis, as compared to the second quarter of Fiscal 2025. The reported increase was primarily attributable to mid-single-digit AUR growth, driven by selected changes to tickets and promotions, and an increase in new owned and operated stores, which was partially offset by a low-single-digit decline in unit volume. The spread between net sales and comparable net sales is primarily attributable to net new store openings and third-party channel performance. On a geographic basis for the second quarter of Fiscal 2026:
•Net sales growth in the Americas region of 5% and 1% on a reported and comparable sales basis, respectively. The increase on a reported basis was primarily attributable to mid-single-digit AUR growth, with selected changes to tickets and promotions, partially offset by a low-single-digit decline in unit volume. The spread between net sales and comparable net sales is primarily attributable to net new store openings and third-party channel performance.
•Net sales growth in the EMEA region of 2% on a reported basis and net sales decline of 4% on a comparable sales basis. The increase on a reported basis was primarily attributable to low-single-digit AUR growth, with selected lower promotional activity, partially offset by a low-single-digit decline in unit volume. The spread between net sales and comparable net sales is primarily attributable to net new store openings and third-party channel performance.
•Net sales growth in the APAC region of 19% and 13% on a reported and comparable sales basis, respectively. The increase on a reported basis was led by low-double-digit AUR growth, lower promotional activity, higher third-party volume, and mid-single-digit growth in unit volume. The spread between net sales and comparable net sales is primarily attributable to third-party channel performance and favorable foreign currency.
For the year-to-date period of Fiscal 2026, net sales increased 3% on a reported basis and were flat on a comparable sales basis, as compared to the year-to-date period of Fiscal 2025. The increase on a reported basis was primarily attributable to mid-single-digit AUR growth, driven by selected changes to tickets and promotions, as well as the addition of new owned and operated stores and favorable foreign currency impacts, partially offset by a low-single-digit decline in unit volume. The spread between net sales and comparable net sales is primarily attributable to net new store openings and third-party channel performance. On a geographic basis for the year-to-date period of Fiscal 2026:
•Net sales growth in the Americas region of 4% and 1% on a reported and comparable basis, respectively. The increase on a reported basis was led by mid-single-digit AUR growth, with selected changes to tickets and promotions, with around flat unit volume. The spread between net sales and comparable net sales is primarily attributable to net new store openings.
•Net sales decline in the EMEA region of 3% and 8% on a reported and comparable basis, respectively. The decline on a reported basis was attributable to lower third-party volume, and a mid-single-digit decline in unit volume, partially offset by low-single-digit AUR growth and favorable foreign currency. The spread between net sales and comparable net sales is primarily attributable to net new store openings, third-party channel performance and favorable foreign currency.
•Net sales growth in the APAC region of 22% and 14% on a reported and comparable sales basis, respectively. The increase on a reported basis was attributable to high-single digit AUR growth and high-single-digit unit volume growth, coupled with higher third-party volume and favorable foreign currency. The spread between net sales and comparable net sales is primarily attributable to third-party channel performance, and favorable foreign currency.
| Abercrombie & Fitch Co. | 28 | 2026 2Q Form 10-Q |
The Company’s net sales by brand for the thirteen and twenty-six weeks ended August 1, 2026 and August 2, 2025 were as follows:
| Thirteen Weeks Ended | ||||||||||||||||||||||||||
| (in thousands, except ratios) | August 1, 2026 | August 2, 2025 | $ Change | % Change | Comparable Sales (1) | |||||||||||||||||||||
Abercrombie | $ | 596,808 | $ | 551,868 | $ | 44,940 | 8 | % | 4 | % | ||||||||||||||||
Hollister | 669,881 | 656,692 | 13,189 | 2 | (3) | |||||||||||||||||||||
| Total | $ | 1,266,689 | $ | 1,208,560 | $ | 58,129 | 5 | — | ||||||||||||||||||
| Twenty-Six Weeks Ended | ||||||||||||||||||||||||||
| (in thousands, except ratios) | August 1, 2026 | August 2, 2025 | $ Change | % Change | Comparable Sales (1) | |||||||||||||||||||||
Abercrombie | $ | 1,161,527 | $ | 1,099,815 | $ | 61,712 | 6 | % | 2 | % | ||||||||||||||||
Hollister | 1,218,983 | 1,206,056 | 12,927 | 1 | (2) | |||||||||||||||||||||
| Total | $ | 2,380,510 | $ | 2,305,871 | $ | 74,639 | 3 | — | ||||||||||||||||||
(1)Comparable sales are calculated on a constant currency basis. Refer to “NON-GAAP FINANCIAL MEASURES,” for further details on the comparable sales calculation.
Cost of sales, exclusive of depreciation and amortization
| Thirteen Weeks Ended | ||||||||||||||||||||||||||||||
| August 1, 2026 | August 2, 2025 | |||||||||||||||||||||||||||||
| (in thousands, except ratios) | % of Net sales | % of Net sales | BPS Change | |||||||||||||||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | $ | 366,109 | ||||||||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-09-04 | Lipesky Scott D. | EVP and COO | Sell | -2,000 | $146.82 | -$293,640 |
| 2026-08-28 | HENCHEL GREGORY J | EVP, Chief Legal Off & Secy | Sell | -30,000 | $146.65 | -$4,399,500 |
| 2026-08-28 | Lipesky Scott D. | EVP and COO | Sell | -5,000 | $149.00 | -$745,000 |
| 2026-08-28 | Robinson Kenneth B. | Director | Sell | -800 | $149.69 | -$119,752 |
| 2026-08-28 | Rust Jay | EVP, Chief HR Officer | Sell | -5,000 | $147.50 | -$737,500 |
| 2026-08-10 | Lipesky Scott D. | EVP and COO | Sell | -10,000 | $115.00 | -$1,150,000 |
| 2026-08-04 | Lipesky Scott D. | EVP and COO | Sell | -10,000 | $110.00 | -$1,100,000 |
| 2026-07-28 | Lipesky Scott D. | EVP and COO | Sell | -10,000 | $105.00 | -$1,050,000 |
| 2026-07-16 | Lipesky Scott D. | EVP and COO | Sell | -10,000 | $100.00 | -$1,000,000 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-12-04 10-Q expected by 2026-12-10 (in 73 days)
- ~2027-03-25 10-K expected by 2027-03-27 (in 184 days)
- ~2027-06-04 10-Q expected by 2027-06-10 (in 255 days)
- ~2027-09-03 10-Q expected by 2027-09-09 (in 346 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-09-04 10-Q Quarterly Report
- 2026-09-04 S-8 Employee Benefit Plan Registration
- 2026-08-26 8-K Earnings Release; Financial Statements and Exhibits
- 2026-08-20 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-06-05 10-Q Quarterly Report
- 2026-05-27 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-20 DEF 14A Proxy Statement
- 2026-03-26 10-K Annual Report
- 2026-03-04 8-K Earnings Release; Financial Statements and Exhibits
- 2025-12-15 8-K Officer/Director Change
- 2025-12-05 10-Q Quarterly Report
- 2025-11-26 8-K Earnings Release; Financial Statements and Exhibits
- 2025-09-05 10-Q Quarterly Report
- 2025-08-28 8-K Earnings Release; Financial Statements and Exhibits
- 2025-06-06 10-Q Quarterly Report