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Abercrombie & Fitch’s APAC Surge: Can 24% Growth Offset Europe Weakness?

Abercrombie & Fitch reported its 14th consecutive quarter of net sales growth, reaching a record $1.1 billion in the first quarter of fiscal year 2026, representing a 2% increase year-over-year and in line with company expectations. Despite geopolitical challenges, notably heightened conflict in the Middle East impacting EMEA sales, the company’s results surpassed expectations on operating income and earnings per share, with operating margin at 8% and diluted EPS of $1.47. The Americas region contributed a 3% sales increase supported by both store and digital traffic, while APAC showed strong growth of 24%, and EMEA declined 10%, primarily due to softer demand in the Middle East and select European markets. The company has responded to EMEA headwinds by adjusting inventory and promotion strategies accordingly.