| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 79 | 14.1x | 17.3x | Top tier | |
Growth | 56 | 4.7% | 7.1% | Around median | |
Quality | 91 | 20.6% | 4.5% | Top tier | |
Safety | 82 | 0.7x | 2.6x | Top tier | |
Capital Return | 45 | 0.00% | 0.06% | Around median | |
Momentum | 97 | 94.4% | -1.6% | Top tier | |
Sentiment | 33 | 5 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
30% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
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Abercrombie & Fitch Co. operates a retail portfolio led by the Abercrombie and Hollister brands, generating revenue from apparel through stores and digital channels, with additional expansion into licensing, wholesale, and new categories. Assortment drivers include knitwear, woven apparel, pants, and jeans, while the company is broadening its reach through NFL products, Hollister’s collaboration with Target in home goods, licensed children’s products, footwear, and accessories. In Q2 fiscal 2026, growth came from both brands and all regions, with new stores and third-party channels contributing to the difference between net sales growth and comparable sales growth.
In Q2 fiscal 2026, the company reported record net sales for the period of $1.27 billion, up 5%, and gross profit of $900.6 million, representing a calculated gross margin of approximately 70.9%. Operating income reached $253 million at an operating margin of 19.9%, but the approximately $100 million IEEPA tariff refund added about 790 basis points to the margin and approximately $1.75 to diluted EPS. Net income was $183.7 million, and diluted EPS was $4.17, compared with adjusted EPS of $2.32 in Q2 fiscal 2025.
By brand mix, Abercrombie brands’ sales grew 8% and comparable sales rose 4%, while Hollister sales increased 2% on top of a 19% increase in Q2 fiscal 2025, with comparable sales declining 3%. Geographically, sales rose 5% in the Americas, 19% in APAC, and 2% in EMEA, while comparable sales changes were 1%, 13%, and negative 4%, respectively. On a trailing twelve-month basis in 2026 data, revenue totaled $5.3 billion, net income was $536.0 million, and EPS was approximately $12.17.
The average analyst price target is $157.3, slightly above the 52-week range high of $155.22, while the wide target range extends from $92 to $185 versus a yearly share-price range of $65.45 to $155.22. The neutral rating reflects the absence of a strong bullish consensus despite the company raising its outlook, and the lack of a documented P/E ratio in the provided data makes EPS and normalization of the IEEPA tariff refund effect more important valuation anchors than an unavailable multiple.
Figures in the text are as of 2026-09-14; the live price is shown at the top of the page.
Net sales reached $1.27 billion, up 5%, with Abercrombie brands growing 8% and Hollister growing 2%. Abercrombie benefited from improved conversion, average unit retail, and full-price selling, while knitwear, woven apparel, pants, and shorts supported the assortment. An approximately $100 million IEEPA tariff refund added about 790 basis points to the operating margin and $1.75 to EPS. Nevertheless, the company said underlying improvement added approximately another 200 basis points beyond the refund effect due to margin improvement and operating leverage.
Management expects net sales growth of approximately 5% from the fiscal 2025 level of $5.27 billion, with growth across regions and brands. The operating margin outlook ranges from 14.5% to 15% and includes approximately 220 basis points from the IEEPA tariff refund. Diluted EPS is expected to range from $13.10 to $13.60, including an estimated $2.10 benefit from the refund. It also plans approximately 130 new or improved store experiences, including 50 new stores and 80 remodels or resizings, versus approximately 20 closures.
Automated analysis for informational purposes only — not investment advice.
Hollister sales grew 2% on top of 19% growth in Q2 fiscal 2025, but comparable sales declined 3%. Management said demand exceeded inventory at multiple points during the quarter, and the brand’s growth then accelerated above the Q2 level during August 2026 after inventory availability improved. The Target collaboration across more than 1,500 locations also added sales and new customers, but it remains at an early stage, and the company did not specify its financial scale. Management aims for Hollister to achieve the highest annual sales in its history during fiscal 2026.
Hollister’s partnership with Target represented the brand’s first significant expansion into wholesale and new categories within the United States, placing its products in more than 1,500 stores. The initiative included non-apparel goods such as blankets and plush products, and management said it demonstrated Hollister’s ability to reach new customers. In the second year of Abercrombie’s official partnership with the NFL, distribution expanded to nflshop.com, stadium stores, team sites, and fanatics.com, with an assortment for all 32 teams. Management did not specify the financial scale of these initiatives but said the impact of third-party channels on gross margin was not material through August 26, 2026.
The company recognized approximately $100 million from an IEEPA tariff refund in Q2 fiscal 2026 and expects an additional $20 million in Q3. The expected full-year benefit is $120 million, equivalent to approximately 220 basis points of operating margin and $2.10 of EPS. Conversely, the outlook includes Section 301 tariffs ranging from 10% to 12.5% on global imports into the United States, and the company expects the limited full-year tariff benefit to be largely offset by higher freight costs. Therefore, the nonrecurring tariff refund should be separated from underlying margin performance when assessing earnings quality.
The company repurchased $177 million of shares in Q2 fiscal 2026, marking the tenth consecutive quarter of repurchases. First-half purchases totaled $282 million, representing approximately 7% of the shares outstanding at the beginning of the year. Management raised its fiscal 2026 repurchase expectation to at least $500 million, with at least $100 million expected to be spent in Q3. At the end of Q2, $568 million remained under the existing authorization, alongside $628 million in cash and cash equivalents.