Abercrombie & Fitch raises sales outlook but shares still dip

NEW ALBANY, OHIO - Abercrombie & Fitch Co. (NYSE: ANF) announced an increase in its net sales forecast for both the fourth quarter and the entire fiscal year of 2024. Despite this, shares fell 7.7% in premarket trading.

CEO Fran Horowitz reported that the company experienced record net sales quarter-to-date through December, surpassing the expectations set in November.

The growth was attributed to comparable sales across all regions and brands during the holiday season. Abercrombie & Fitch's focus on offensive strategies and customer engagement through product assortments and marketing initiatives was highlighted as a key contributor to this success.

Looking ahead to the end of the fiscal year, Horowitz expressed pride in the company's performance throughout 2024, anticipating a net sales growth of around 15% and a strong operating margin also around 15%. The CEO thanked the global associates for their efforts in achieving sustainable, profitable growth.

The updated outlook for 2024 suggests that Abercrombie & Fitch is on track to outperform the financial targets set by the Always Forward Plan 2025, which were established in June 2022.

Horowitz remains confident in the company's brand strength and operating model as Abercrombie & Fitch looks to 2025. The goal is to leverage its margin structure and balance sheet to increase operating income and earnings per share at a faster rate than sales, aiming to enhance long-term shareholder value.

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Source: Investing.com