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Key Takeaways
- Abercrombie & Fitch beat earnings and revenue forecasts and raised its guidance as sales advanced across its brands and regions.
- The clothing retailer set a first-quarter record for revenue, boosted by a 31% jump in sales of its Abercrombie brand.
- Abercrombie shares soared to an all-time high on the news.
Abercrombie & Fitch (ANF) shares soared to an all-time high Wednesday as the clothing retailer’s first-quarter results easily exceeded estimates and it raised its outlook as sales rose for all regions and brands.
The company reported quarterly net income of $113.9 million—nearly seven times greater than a year ago—with earnings per share (EPS) of $2.14, up from $0.32 in 2023. Revenue jumped 22% year-over-year to $1.02 billion, a first-quarter record. Profit and revenue topped forecasts.
Sales of its Abercrombie brand climbed 31% to $571.5 million, and Hollister brand sales rose 12% to $449.2 million. They were up 23% to $820.1 million in the Americas; 19% to $164.8 million in Europe, the Middle East, and Africa; and 10% to $35.8 million in the Asia-Pacific region.
Abercrombie & Fitch ‘Successfully Navigated Seasonal Transitions’
Chief Executive Officer (CEO) Fran Horowitz said the company “successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline.”
Abercrombie now expects full-year sales to rise about 10% from $4.3 billion in fiscal 2023, up from its previous outlook of a 4% to 6% gain. It sees operating margin of approximately 14% compared with the earlier prediction of about 12%.
Shares of Abercrombie & Fitch soared more than 19% to $181.68 as of 11:42 a.m. ET Wednesday after touching a record $182.86 earlier in the session. They have have more than doubled this year.