Key Takeaways
- Abercrombie & Fitch beat fourth-quarter earnings and revenue estimates, and gave strong first-quarter guidance on sales at its namesake brands and higher prices.
- The retailer said it expected net sales to be “low double-digits” higher in its current fiscal quarter.
- Abercrombie & Fitch shares lost ground after hitting an all-time high Tuesday, although they remain up about 30% in the past month.
Abercrombie & Fitch Co. (ANF) on Wednesday posted holiday-quarter results and guidance that beat analysts’ forecasts on growing demand for its namesake brands, higher retail prices and lower raw material costs.
Investors took profit on the specialty clothing retailer’s numbers for the fourth quarter ending Feb. 3, however, after shares hit a record high Tuesday ahead of the results.
The owner of the Abercrombie and Hollister brands reported fourth-quarter earnings per share (EPS) of $2.97, well above the 75 cents it posted the prior year.
Revenue soared 21% to $1.45 billion, surpassing its own forecasts released during its January business update. It said then it expected net sales to increase in the mid-teens in the fiscal fourth quarter.
Both top- and bottom-line numbers for the fourth quarter exceeded estimates.
The retailer said its gross profit margins surged on the back of higher average unit retail prices, and lower freight and raw material costs.
Comparable store sales jumped 16%.
Sales of its Abercrombie brands skyrocketed 35%, while those for Hollister rose 9%.
Abercombie & Fitch said it expected net sales to be “low double-digits” higher in its current fiscal first quarter, ahead of estimates.
CEO Fran Horowitz credited the strong results to the execution of Abercrombie’s “Always Forward Plan,” a strategy it launched in 2022 to increase growth, expand its digital presence, and “operate with financial discipline.”
“We executed our playbook, delivering the right product, voice and experience across regions and brands,” she said in the earnings statement.
Shares fell 2% to $136.82 as of about 12:00 p.m. ET but are up more than 30% in the past month.
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