Abercrombie shares jump 13% on earnings beat even as Iran conflict hits sales

Abercrombie & Fitch posted mixed first-quarter results on Wednesday and weaker-than-expected guidance after the conflict in the Middle East "directly impacted" sales, the company said. Despite those challenges, shares jumped about 13% in morning trading as the company easily topped Wall Street's earnings estimates. Sales in Abercrombie's Europe, Middle East and Africa region fell 10% during the quarter, driven by a slowdown in demand at the brand's Hollister banner that came as the conflict ramped up, finance chief Robert Ball said on a call with analysts. Overall, it reduced first-quarter total company net sales growth by more than 0.5 percentage points relative to the retailer's outlook, he said. "We're focused on what we can control, including our inventory levels and marketing investments, ensuring we can respond to what's happening in real-time," CEO Fran Horowitz added on the call. "Despite these EMEA headwinds, we expect total sales growth for the second quarter, along with full-year 2026, which would be our fourth consecutive year of net sales growth." In the current quarter, Abercrombie expects earnings per share to be between $1.80 and $2, well behind estimates of $2.54, according to LSEG. Though the company's outlook for the current quarter was worth than analysts expected, it reaffirmed its full-year guidance. Abercrombie anticipates net sales will rise 3% to 5% for the fiscal year, with earnings per share of $10.20 to $11. …