Abercrombie & Fitch reports strong Q4 earnings, exceeding expectations with sales growth and profit

From NBCUniversal:

Abercrombie & Fitch reported a surge in holiday-quarter sales, up 21%, and profit growth fueled by higher prices and lower costs. The company expects continued growth with better-than-expected sales guidance. For the fiscal fourth quarter, Abercrombie outperformed Wall Street expectations with $2.97 EPS and $1.45 billion in revenue. Sales rose 21% to $1.45 billion, and net income increased to $158.4 million. The company anticipates low double-digit sales growth for the current quarter. CFO Scott Lipesky expects growth to be stronger in the first half of the year due to calendar shifts.

During the quarter, comparable sales grew by 16%, and gross margin reached 62.9%. CEO Fran Horowitz mentioned that the strong fourth quarter performance was driven by growth across regions and brands. Abercrombie’s global customer base expansion focus aims to achieve the long-term goal of $5 billion in global annual sales. Wall Street has been pleased with Abercrombie’s transformation under Horowitz’s leadership, with the stock surging 283% in 2023 and continuing to rise in 2024. Analysts are optimistic about Abercrombie’s growth potential despite upcoming tougher prior-year comparisons.



Read more at NBCUniversal: Abercrombie & Fitch (ANF) earnings Q4 2023