On October 24, 2024, an Abercrombie & Fitch store stood in downtown Manhattan, New York.
Spencer Pratt | Getty Images
Abercrombie & Fitch It won’t be giving up its crown anytime soon.
The apparel company issued strong holiday guidance on Tuesday after posting its sixth consecutive quarter of double-digit sales growth and another quarterly performance that beat estimates. this recently arrested The sex trafficking of the company’s former CEO, Mike Jeffries, does not appear to have had an impact on performance.
Here’s how Abercrombie performed in its fiscal third quarter compared to Wall Street expectations, according to an LSEG survey of analysts:
- Earnings per share: $2.50 vs. $2.39 expected
- income: $1.21 billion vs. $1.19 billion expected
The company reported net income of $131.98 million, or $2.50 per share, for the three-month period ended Nov. 2, compared with $96.2 million, or $1.83 per share, a year earlier.
Sales increased to US$1.21 billion, an increase of approximately 14% from US$1.06 billion in the same period last year.
For the all-important holiday shopping quarter, Abercrombie expects sales to rise 5% to 7%, above analysts’ expectations of 4.8%, according to LSEG. The company expects full-year sales to grow 14% to 15%, higher than its previous forecast of 12% to 13%. The new outlook is higher than the 12.1% growth analysts had expected, according to LSEG.
Despite the better-than-expected guidance, Abercrombie shares fell about 3% in premarket trading.
In a press release, CEO Fran Horowitz struck a positive note and ignored concerns she might have. Mentioned in the previous quarter On “an increasingly uncertain environment.”
“With broad-based growth across geographies and brands, we continue to leverage our regional strategy and operating model to execute at a high level. Each of our regions achieved double-digit growth during the quarter, with growth of 14% in the Americas, Europe, The Middle East and Africa grew 15% and Asia Pacific grew 32%,” Horowitz said.
Comparable sales for the Abercrombie and Hollister brands increased 11% and 21%, respectively. Horowitz pointed to the strong performance of Abercrombie and Hollister last year, which saw growth of 26% and 7% respectively.
Under Horowitz’s guidance, Abercrombie has become one of the biggest winners in retail. It is continuing to build on those numbers as it reported strong results last year.
To maintain momentum, Horowitz is looking to international markets for growth. Abercrombie has also entered new categories, such as its wedding line and its recent collaboration with the NFL. The company is also focused on developing the Hollister chain for Gen Z shoppers and ensuring that the brand is differentiated from Abercrombie for millennials.
During the quarter, Hollister’s sales grew 14% and accounted for nearly half of total revenue.
Some of the gloom that hung over the second half of the year following President-elect Donald Trump’s victory appears to have dissipated as retailers brace for Black Friday and the length of the holiday shopping season.
For example, Abercrombie and dick’s sporting goods Both companies reported earnings on Tuesday, showing caution as they released their summer earnings, but that sentiment gave way to bullishness as the election played out.
Consumer sentiment has improved since Trump’s election, and analysts hope the certainty of the election outcome – no matter who wins – will help spending.
