Abercrombie & Fitch (ANF) Q1 Profit Drops on Higher Costs, Disappoints on Outlook

Abercrombie & Fitch Co. (ANF) reported a decline in first-quarter net income on May 27, 2026, as rising expenses offset a slight sales increase and the retailer issued a weaker-than-expected forecast. Net income fell to $45.2 million, or $0.88 per diluted share, from $52.1 million, or $1.01 per share, a year earlier. Revenue rose 2% to $1.12 billion, missing analyst estimates of $1.14 billion. The company cited elevated marketing and labor costs that squeezed operating margin to 6.8% from 8.2%. Comparable sales edged up 1%, with the Abercrombie brand up 3% while Hollister was flat. For the second quarter, Abercrombie projected revenue of $1.15 billion to $1.18 billion, below the $1.21 billion consensus, and cautioned that cost pressures would persist. Shares declined 4% in premarket trading.