Abercrombie & Fitch reported fiscal first-quarter sales growth of 1.5% to $1.11 billion, beating analyst expectations for earnings but falling slightly short on revenue targets. The retailer posted a profit of $67.1 million, down from $80.4 million in the prior year, while adjusted earnings of $1.47 per share exceeded Wall Street forecasts of $1.28.

Comparable sales declined 1% across the company during the quarter ended May 2, with the namesake brand experiencing flat sales and Hollister falling 2%. This performance missed analyst expectations of 0.3% same-store sales growth. The company cited softening demand in Europe, the Middle East, and Africa, where regional fighting escalated during the period.

The mixed results demonstrate Abercrombie's ability to maintain sales momentum amid geopolitical challenges. While the company exceeded earnings expectations, the decline in comparable sales signals ongoing pressure in key markets. Investors will watch whether Abercrombie can sustain its profitability as it navigates these regional headwinds in the coming quarters.