From CNBC: 2024-08-28 10:03:16

Abercrombie & Fitch reported a 21% increase in revenue for its fiscal second quarter, surpassing expectations with strong sales growth. The company issued bullish guidance for the current quarter while maintaining steady full-year outlook amid economic uncertainties. Shares fell 15% in early trading despite positive earnings and sales figures.

The company’s net income for the quarter was $133 million, or $2.50 per share, up from $57 million, or $1.10 per share, a year earlier. Sales rose to $1.13 billion, a 21% increase from the previous year, driven by an 18% jump in same-store sales. Abercrombie expects low double-digit percentage sales growth for the current quarter and raised its full-year guidance to 12-13%.

CEO Fran Horowitz remains confident in the company’s ability to deliver sustainable, profitable growth this year despite a challenging economic environment. International markets and the Hollister and Abercrombie Kids brands are driving sales growth. Expansion efforts include a partnership with Haddad Brands to expand distribution channels for Abercrombie Kids globally.

Investors are closely watching Abercrombie’s growth trajectory after a successful comeback story in the retail industry. The company’s focus on strategic investments in marketing, digital, technology, and store operations is positioning itself for long-term success. Sales at Hollister and international markets are key growth drivers for Abercrombie’s overall performance.



Read more at CNBC: Abercrombie & Fitch (ANF) earnings Q2 2024