Earnings

Abercrombie & Fitch surges more than 20% after reporting surprise profit

In this article

Pedestrians pass in front of an Abercrombie & Fitch Co. store in San Francisco.
David Paul Morris | Bloomberg | Getty Images

Shares of Abercrombie & Fitch soared 18% in premarket trading Wednesday after the mall retailer beat estimates, raised its guidance and reported a surprise profit. 

Here’s how Abercrombie did in its fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

  • Earnings per share: 39 cents, adjusted, vs. a loss of 5 cents expected
  • Revenue: $836 million vs. $815 million expected

The company’s reported net income for the three-month period that ended April 29 was $16.57 million, or 32 cents a share, compared with a loss of $16.46 million, or 32 cents a share, a year earlier. Excluding one-time items, Abercrombie reported per-share profit of 39 cents in the quarter.

Sales rose to $836 million from $812.8 million a year earlier.

Same-store sales were up 3% in the quarter, versus Street Account estimates of a 1% decline.

The apparel retailer raised its guidance following the earnings beat. For fiscal 2023, it now expects net sales to grow between 2% and 4%, compared to a previous range of 1% to 3%. It now expects its operating margin to be in the range of 5% to 6%, compared to its previous outlook of 4% to 5%.

For the fiscal second quarter, the company expects net sales to grow 4% to 6% and an operating margin in the range of 2% to 3%.

Articles You May Like

UAW threatens to strike Ford truck plant in Kentucky if local issues aren’t resolved
Here are some strategies to maximize your financial aid for college
IBM Reopens Defined Benefit Pension Plan—Will Other Corporates Follow?
IRS aims to close ‘inequity gap’ for unpaid taxes. How the agency targets top earners for audit
Starbucks has a new accessible store design. Take a look inside

Leave a Reply

Your email address will not be published. Required fields are marked *