Abercrombie & Fitch posts Q2 beat and lifts full-year outlook — but braces for bigger tariff hit

Abercrombie & Fitch posted stronger-than-expected Q2 results, fueled by record quarterly sales and its 11th straight quarter of growth.

Adjusted earnings per share came in at $2.32, compared with Wall Street’s estimate of $2.30 and the company’s previous guidance of $2.10 to $2.30. Revenue landed at $1.2 billion, in line with the Street’s estimates and above the company’s previous forecast of $1.13 billion to $1.15 billion. Meanwhile, same-store sales rose 3%, handily topping consensus estimates of 1.8%.

Looking ahead, Abercrombie raised its full-year outlook. The retailer now expects net sales growth of 5% to 7% and diluted EPS of $10.00 to $10.50. That compares with its prior forecast of 3% to 6% sales growth and EPS of $9.50 to $10.50. Wall Street, meanwhile, has been looking for sales growth of 5.2% and adjusted earnings of $10.21 per share.

Abercrombie has been under pressure as tariffs weigh on profits. Management previously said that fiscal 2025 gross profit could take a $50 million hit from tariffs, but now expects that to cost about $90 million. Analysts say the performance of Abercrombie’s Cali-based sibling, Hollister, is key to sustaining growth as demand for its namesake brand cools. Hollister delivered its best-ever second quarter for net sales, up 19%.

Abercrombie shares were up 37% year to date heading into earnings.