.August 28, 2024 04:08:00 PM

Abercrombie & Fitch (NYSE:ANF) exceeded expectations in Q2 with adjusted earnings per share of $2.50, beating the projected $2.19. Revenue rose 21% to $1.13 billion, surpassing the $1.1 billion consensus. Comparable sales jumped 18%, with Abercrombie brands up 26% and Hollister brands up 17%. Gross profit margin expanded to 64.9%. Despite the strong performance, shares dropped over 16% intra-day after the announcement.

CEO Fran Horowitz attributed the better-than-expected sales growth and profitability in Q2 to strong execution. For fiscal year 2024, Abercrombie raised its net sales growth forecast to 12-13% and increased its operating margin outlook to 14-15%.

Looking ahead, Abercrombie anticipates low double-digit sales growth in Q3 compared to Q3 2023’s $935 million revenue.