| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 84 | 12.5x | 17.8x | Top tier | |
Growth | 61 | 4.7% | 7.1% | Around median | |
Quality | 90 | 16.7% | 4.5% | Top tier | |
Safety | 74 | 2.1x | 2.6x | Top tier | |
Capital Return | 11 | — | 2.12% | Bottom tier | |
Momentum | 86 | 20.4% | 2.9% | Top tier | |
Sentiment | 32 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Abercrombie & Fitch Co. operates a retail portfolio centered on the Abercrombie and Hollister brands, generating revenue through stores, digital channels, and third-party channels. The company is expanding the reach of both brands from apparel to additional categories and channels; Hollister has entered over 1,500 Target stores with products including dorm gear, while Abercrombie is expanding the distribution of NFL products to nflshop.com, stadium stores, team sites, and Fanatics.com. The company is also investing in footwear and accessories, Abercrombie kids licensing, and store openings and renovations.
In Q2 of Fiscal 2026, the company reported record quarterly revenue of $1.27 billion, up 5% year-over-year, operating income of $253 million, an operating margin of 19.9%, and diluted earnings per share of $4.17. The quarter benefited from an IEEPA duty recovery of approximately $100 million, which added about 790 basis points to the operating margin and about $1.75 to EPS; however, performance also exceeded management's expectations by an additional 200 basis points driven by margin improvement and operating leverage from stronger sales.
The growth mix was balanced but uneven: Abercrombie brands' sales increased 8% and comparable sales rose 4%, while Hollister sales increased 2% and comparable sales declined 3%. Geographically, revenue grew 5% in the Americas, 19% in APAC, and 2% in EMEA, while comparable sales changes were 1%, 13%, and negative 4%, respectively. The difference between revenue growth and comparable sales growth was driven by new stores and the performance of third-party channels.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $155.13, which is very close to the upper end of the 52-week range of $154.58, but dispersion is wide between a low target of $92 and a high target of $185, with a neutral consensus. Data published on August 26, 2026, indicated an apparent P/E ratio of 14.2x, but assessing sustainable profitability should isolate the IEEPA duty recovery benefit estimated at about $2.10 per share in Fiscal 2026 and accounting for 220 basis points of annual operating margin.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $1.27 billion, a 5% year-over-year increase, and operating income was $253 million. Operating margin reached 19.9% and diluted EPS was $4.17, compared to an adjusted EPS of $2.32 in the prior-year quarter. The IEEPA duty recovery of about $100 million contributed approximately 790 basis points to the margin and $1.75 to EPS. Even after this benefit, management stated that results exceeded their expectations by an additional 200 basis points.
Abercrombie brands' revenue grew 8%, accelerating from 3% in Q1 of Fiscal 2026, and its comparable sales rose 4%. Hollister revenue increased 2% following a 19% growth in the prior-year quarter of Fiscal 2025, while its comparable sales declined 3%. Abercrombie benefited from strength in wovens, shirts, pants, and full-price selling, whereas Hollister saw strength in wovens, shorts, and non-denim bottoms. Management noted that Hollister's growth accelerated in August 2026 following improved inventory availability.
Management expects revenue growth of approximately 5% compared to revenue of $5.27 billion in Fiscal 2025, with growth across regions and brands. The expected operating margin range is between 14.5% and 15%, and the diluted EPS range is between $13.10 and $13.60. This outlook includes IEEPA duty recoveries of about $120 million, adding approximately 220 basis points to the margin and $2.10 to EPS. The company also targets share repurchases of at least $500 million and capital expenditures of approximately $250 million.
The Target partnership introduced Hollister products to over 1,500 locations, representing the brand's first material US expansion into wholesale and non-apparel categories. Strong response included dorm products like throws and plush items, and management said the partnership reached new customers and added to Q2 Fiscal 2026 revenue growth. Abercrombie is entering its second year as the official apparel partner of the NFL, with products for all 32 teams. Distribution is expanding to nflshop.com, stadium stores, team sites, and Fanatics.com, with no material negative impact reported on gross margin as of August 26, 2026.
Operating margin was 19.9% in Q2 of Fiscal 2026, but the IEEPA duty recovery alone added about 790 basis points. For the full Fiscal 2026, management expects a margin between 14.5% and 15% that includes a 220 basis point recovery benefit, while indicating an underlying level of approximately 12.5%. Conversely, the quarter exceeded management's expectations by about 200 basis points after isolating the recovery, thanks to margin improvement and operating leverage. Therefore, assessing profitability sustainability depends on full-price selling, inventory, and sales performance after the recovery impact ends.
Revenue in Q2 of Fiscal 2026 grew 5% in the Americas, 19% in APAC, and 2% in EMEA. Comparable sales were 1% in the Americas and 13% in APAC, but declined 4% in EMEA. The UK remained a strong growth market, Germany returned to growth, and the Middle East business showed sequential improvement. Management believes APAC's first-half performance supports the region's potential, as they continue to review the most appropriate path to capture that opportunity.
