News

Abercrombie & Fitch Co. Beats Estimates and Raises Guidance

1 2 3 4 5

4.9

Andrew R. Michaud

• August 23, 2023

Abercrombie & Fitch Co.'s (ANF) stock soared by 16% in premarket trade on Wednesday, following a strong second-quarter performance and an increased guidance. The New Albany, Ohio-based teen clothing retailer reported a net income of $56.9 million, or $1.10 per share, compared to a loss of $16.8 million, or 33 cents per share, in the same period last year. Adjusted per-share earnings also stood at $1.10, surpassing the FactSet consensus of 17 cents.

Impressive Sales Growth and Same-store Sales Performance

Abercrombie & Fitch Co. reported sales of $935.3 million for the second quarter, exceeding the FactSet consensus of $844.0 million and marking a significant increase from $805.1 million in the previous year. Notably, same-store sales rose by an impressive 13%, far surpassing the expected 4.3% rise.

Positive Outlook

CEO Fran Horowitz expressed her satisfaction with the strong customer reception of the company's brands and products, highlighting a notable 26% net sales growth in Abercrombie brands. This positive performance has prompted Abercrombie & Fitch Co. to raise its full-year guidance, now anticipating a sales growth of 10%, up from the previous guidance of 2% to 4%. Additionally, the company expects third-quarter sales to rise by low double-digits.

Significant Stock Market Performance

Year to date, Abercrombie & Fitch Co.'s stock has gained an impressive 80%. This stands in contrast to the 14% gain seen in the S&P 500 index (SPX).

In summary, Abercrombie & Fitch Co.'s second-quarter results surpassed estimates, showing strong sales growth and same-store sales performance. The company's positive outlook and significant stock market performance position it as a promising player in the retail industry.