Abercrombie & Fitch posts Q2 earnings, revenue beat

Abercrombie & Fitch (ANF) reported better-than-expected second-quarter earnings and revenue on Wednesday, but its shares fell 6% premarket following the release.

The apparel retailer posted adjusted earnings per share of $2.50, surpassing analyst estimates of $2.19. Revenue came in at $1.13 billion, beating the consensus forecast of $1.1 billion and representing a 21% YoY increase. Comparable sales rose 18% in the quarter.

Abercrombie brands saw 26% growth, while Hollister brands accelerated to 17% growth. The company's gross profit margin expanded by 240 basis points to 64.9%.

"Our team continued to execute at a very high level in the second quarter, resulting in better than expected sales growth and profitability," said CEO Fran Horowitz in a statement.

For the full fiscal year 2024, Abercrombie now expects net sales growth of 12% to 13%, up from its previous outlook of around 10%. The company also raised its operating margin guidance to a range of 14% to 15%.

Looking ahead to the third quarter, Abercrombie forecasts low double-digit net sales growth compared to Q3 2023 revenue of $935 million.

Source: Investing.com