Abercrombie & Fitch Co. Q2 2026 Earnings Call Summary

Abercrombie & Fitch Co. reported a record $1.27 billion in net sales for Q2 2026, marking the 15th consecutive quarter of top-line growth. The company's brands grew 8%, driven by full-price selling and the new SoHo flagship. Hollister returned to growth, up 2%, by using a "read and react" model to manage inventory. Strategic diversification, like the Hollister-Target partnership, opened new customer segments.

Operating margin guidance was raised to 14.5%-15%, thanks to a $120 million IEEPA tariff refund. The company expects to repurchase at least $500 million in shares for the year. Management expects double-digit operating margins to continue, supported by category expansion, channel diversification, and licensing. Hollister demand exceeded inventory in Q2, but the company remains confident in growth prospects across EMEA and APAC regions.