Dana Telsey (Telsey Advisory Group) asked how the Abercrombie brand is tracking by category and channel, and for puts and takes across international regions.
Fran said Abercrombie traffic is positive, the customer file is growing, and engagement is strong across digital and stores; the brand is well inventoried in denim, fleece and sweaters heading into Q4 with 30 stores opened to date. Robert added that EMEA is exciting with U.K. results strong, Germany and other European markets are in early innings with expected short-term fluctuations, and APAC has similar dynamics with a huge market but small business focused on building awareness.
Corey Tarlowe (Jefferies) asked how the company expects to build on Hollister's momentum into 2026.
Fran highlighted 16% growth on top of last year's 14%, the 10th consecutive quarter of growth, with balanced growth across genders and categories, growing AUR on lower discounts, a growing customer file, strong traffic, and tight inventory; nearly every category is working, and the Taco Bell partnership for Cyber Monday adds momentum into holiday.
Corey Tarlowe (Jefferies) followed up on how to think about traffic versus ticket heading into holiday and into next year.
Robert said no meaningful ticket increases have been taken and tickets are stable through holiday, with promotions and pricing used to drive traffic; ticket increases will start with spring deliveries post-holiday. AURs are growing with sequential improvement across both brands, traffic is positive across both brands and channels, and customer files are growing.
Matthew Boss (JPMorgan) asked about the cadence of Abercrombie trends through Q3 and into November, plus inventory composition by brand and Q4 gross margin puts and takes.
Robert said inventory is in good shape, up 5% at cost (tariffs ~3% of that) and units up ~1%, with Hollister units up more than A&F; both brands positioned to chase. Gross margin was down ~260 bps in Q3 (210 bps tariffs) with small freight/AUR benefit offset by third-party channels and reserves; Q4 will carry ~360 bps of tariff impact ($60M), ~150 bps of freight tailwind, and AURs assumed flat.
Marni Shapiro (The Retail Tracker) asked whether the collaborations (NFL, NCAA, Kimo Sabe, Crocs) are global or U.S.-specific, whether they bring in new customers, and the cadence into 2026.
Fran said the goal of each collaboration is an authentic branding moment driven by listening to customers; the NFL partnership is bringing in new customers via brand awareness and acquisition, Kimo Sabe capitalized on the Western trend, and the Taco Bell collab is for Cyber Monday; they will continue seeking authentic moments into 2026. Scott added the collaborations reflect how strong each brand is, enabling partnerships with other great brands.
Katherine Delahunt (Morgan Stanley, for Alexandra Straton) asked about the timeline for the Abercrombie banner to return to sales and comp growth.
Robert cited the Q3 sequential improvement, improved product execution and clean inventory, with holiday bets in sweaters, fleece and denim; marketing and new collaborations are driving traffic and a growing customer file. The aim is to hold Abercrombie brands flat against last year's record in Q4, setting up well for next year.
Mauricio Serna (UBS) asked about marketing plans by brand and the Q4 investment assumption, and for a breakdown of Abercrombie's Q3 comp between AUR and units.
Robert declined to share specific marketing plans but noted collaborations like Taco Bell have been effective with traffic up, and marketing is intentional and focused on long-term brand building. On A&F's -7% comp, AUR was still down but sequentially improved from the first half, traffic was positive, and conversion was under a little pressure but heading in the right direction.
Rick Patel (Raymond James) asked about SG&A expectations given higher marketing and offsetting efficiencies, and about any regional or weather-driven comp variability in the U.S.
Robert said marketing will increase slightly year over year in Q4 but at a slower clip, with G&A expense leverage from sales growth, and at the midpoint of the 4%-6% guide little net leverage or deleverage is expected. There was nothing regional to call out; the broad store fleet means weather events offset across the quarter.
Janine Stichter (BTIG) asked what is happening on the Abercrombie men's side given women led the sequential improvement, and for initial thoughts on first-half 2026 tariffs.
Fran said men's is also seeing nice sequential improvement with clean inventories and a focus on denim, fleece and sweaters into Q4. Robert emphasized a well-diversified sourcing footprint across a dozen-plus countries, entering the next tariff chapter from a position of strength (15% operating margins and record sales last year), with targeted spring price increases and expense efficiencies; specifics for 2026 will come on the next call.
Janet Kloppenburg (JJK Research) asked whether tariff impact will be greater in Q1 than Q4, when price increases will be complete, whether the A&F assortment improved from mid-October, and about Q3 versus Q4 promo levels.
Robert said 2026 is not yet quantified, but mitigation tactics and spring price increases (tickets rising late December into January) plus vendor negotiations should provide relief off the Q4 360 bps tariff headwind in Q1; promotional cadence remains disciplined with AURs targeted flat in Q4. Fran confirmed sequential improvement across categories at Abercrombie with clean inventory and an approximately-flat Q4 goal against a record, and said the first-half merchandising challenge (inventory over-balanced to sale/clearance versus 2024) that drove reduced AUR is being resolved as customers respond to newer product.