Despite record sales: Abercrombie & Fitch's first-quarter profit declines

US apparel group Abercrombie & Fitch Co. set a new sales record in the first quarter of the 2026/27 financial year. However, its profit declined.

According to a statement released on Wednesday, sales in the 13 weeks to May 2 amounted to approximately 1.11 billion US dollars. This was a two percent increase on the same quarter last year and a new record high for the company. Adjusted for currency fluctuations, however, revenue fell by one percent.

The group attributed the slight increase to its Abercrombie division, where sales rose by three percent to 564.7 million US dollars. On a currency-neutral basis, sales remained almost unchanged compared to the same quarter last year. In the Hollister segment, revenue of 549.1 million US dollars was slightly below the previous year's level. On a currency-neutral basis, they decreased by two percent.

Impact of the Iran war slows sales growth

Group sales developed positively in the Americas. They rose by three percent (one percent on a currency-neutral basis) to 899.9 million US dollars. The Asia-Pacific region saw even more dynamic growth, with an increase of 24 percent (15 percent on a currency-neutral basis) to 46.5 million US dollars.

Conversely, sales declined in the EMEA region, which includes Europe, the Middle East and Africa. Sales there shrank by ten percent (11 percent on a currency-neutral basis) to 167.4 million US dollars. The group attributed the decline in part to the impact of the Iran war, which weighed on demand in the region. The Hollister division was particularly affected.

Annual forecasts remain unchanged

Higher operating expenses impacted the result. Operating profit fell by 12.5 percent to 88.8 million US dollars. Net profit attributable to shareholders decreased by 16.5 percent to 67.1 million US dollars, but still exceeded expectations.

The latest figures gave management no reason to change the annual forecasts. For 2026/27, the group therefore continues to expect sales growth of three to five percent, an operating margin in the range of 12.0 to 12.5 percent and diluted earnings per share of between 10.20 and 11.00 US dollars.

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