Abercrombie & Fitch Stock Is Slipping After Strong Earnings -- Barrons.com

Dow Jones03-06

Angela Palumbo

Abercrombie & Fitch reported a strong fourth quarter as growth in its name-brand store led the pack. Shares are lower after a huge run-up in recent months.

Abercrombie posted fourth-quarter earnings per share of $2.97 on revenue of $1.45 billion. Analysts surveyed by FactSet had expected earnings per share of $2.83 on revenue of $1.43 billion. A year ago the apparel retailer reported earnings per share of 81 cents on revenue of $1.2 billion.

Same-store sales for the quarter rose 16%, in line with expectations.

For the year, earnings per share of $6.28 a share on revenue of $4.28 billion beat analyst expectations for earnings per share of $6.13 on revenue of $4.26 billion. Last year, Abercrombie earned 12 cents per share on revenue of $3.7 billion.

For the full year, Abercrombie expects to post net sales growth between 4% to 6% from the $4.3 billion reported in fiscal 2023. That tops the $4.43 billion consensus estimate.

Abercrombie stock was down 0.5% in premarket trading Wednesday, while the S&P 500 futures were up 0.5%. Coming into the session, the stock has soared 406% over the last 12 months.

"Abercrombie brands grew net sales 35%, continuing an impressive multi-quarter growth trend, while Hollister brands grew 9%, delivering a third consecutive quarter of sales growth," CEO Fran Horowitz said in the earnings release.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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March 06, 2024 08:52 ET (13:52 GMT)

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Comments

  • mingzlee
    03-06
    mingzlee
    Why? Any1 has any inputs?
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