By Connor Hart

Abercrombie & Fitch said sales rose, even as the company faced softer demand in certain markets due to the war in the Middle East.

Sales ticked up 1.5% on the year to $1.11 billion in the fiscal first quarter, roughly in line with Wall Street models. However, sales across Europe, the Middle East and Africa fell 10% to $167.4 million, as those shoppers reined in purchases as the conflict across the region intensified.

The clothing company will likely continue to see softer demand across EMEA during the current quarter and for the full year, Chief Financial Officer Robert Ball said on a call with analysts Wednesday. Abercrombie expects to mitigate some of the impact, though, by adjusting inventory levels and dialing in promotions, he added.

The decline was also offset by stronger sales in the Americas and Asia-Pacific regions.

Comparable sales--which account for store openings and closings--fell 1%, reflecting flat sales across Abercrombie's namesake brand and a 2% decline across its Hollister brand.

While Abercrombie's sales trends marked a modest miss against expectations, William Blair analysts said they were better than many investors feared, resulting in an upbeat market reaction.

Shares jumped 11% to $83.18 during Wednesday's trading session. Despite the gain, the stock has lost about a third of its value so far this year.

Looking ahead, Abercrombie expects to get some relief from lower tariffs this year, Ball said.

"However, we expect that relief to be offset by elevated freight costs and continued investments in marketing and stores," he added.

The company guided for earnings of $1.80 to $2 a share in the current quarter, as well as sales growth of 2% to 4%. For the year, Abercrombie backed its outlook for earnings of $10.20 to $11 a share and for sales to climb 3% to 5%.

The outlook implies stronger sales and margins in the second half of the year, William Blair analysts said.

"We would be cautious on the back-half guide given the similar set-up to last year, when management continued to walk down profitability expectations throughout the year."

For its quarter ended May 2, Abercrombie posted a profit of $67.1 million, down from $80.4 million in last year's comparable period. Quarterly adjusted earnings of $1.47 a share topped the $1.28 a share that analysts polled by FactSet expected.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 27, 2026 11:44 ET (15:44 GMT)

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