Key Takeaways
- Abercrombie & Fitch and American Eagle Outfitters raised their earnings guidance on solid holiday sales.
- Abercrombie & Fitch anticipates the highest-ever fourth-quarter sales for its women’s business.
- American Eagle Outfitters posted a record for holiday sales.
Shares of both Abercrombie & Fitch (ANF) and American Eagle Outfitters (AEO) jumped Monday as the two clothing retailers boosted their fourth-quarter earnings outlooks on strong holiday sales.
Abercrombie & Fitch now expects fourth-quarter revenue will rise by a “high-teens” percentage, up from its previous estimate of a low-double-digit percentage gain. The parent of Gilly Hicks, Hollister, and Social Tourist brands sees full-year net sales increasing 14% to 15%, versus the earlier-projected 12% to 14%.
Chief Executive Officer (CEO) Fran Horowitz said each of the company’s brands “continued to deliver solid growth led by Abercrombie brands.” She added that the Abercrombie & Fitch women’s business “is expected to achieve its highest-ever fourth quarter sales, complemented by an acceleration in men’s growth.”
American Eagle Outfitters boosted its fourth-quarter guidance on record holiday sales and strong merchandise margins. It indicated that as of Dec. 30, quarterly revenue was up 8%. Because of that, it expects full-quarter revenue to climb by a “low-double-digit” percentage, climbing from its previous estimate of a high-single-digit advance.
American Eagle Outfitters CEO Jay Schottenstein said that his company delivered “winning product assortments and an exciting customer experience” over the holidays.
Abercrombie & Fitch shares reached an all-time high Monday, trading just a little over $99 a share at 11:20 a.m. ET. Shares of American Eagle Outfitters were up more than 5% in Monday intraday trading and have gained about 40% over the past year.
TradingView