Abercrombie & Fitch's (ANF) raised the outlook for the full fiscal 2024, sending its shares rising in the market pre-open Wednesday.
For the fiscal Q1 2024, the clothing retailer posted earnings per share (EPS) of $2.14, topping the analyst consensus of $1.70. Revenue came in at $1.02 billion, also above the consensus projection of $961.98 million.
Comparable sales increased by 21%, above the estimated 12.6%. The gross margin was 66.4%, compared to the expected 64.4%.
ANF stock rose 2% in the premarket.
Going forward, the company expects net sales growth to increase by mid-teens in the fiscal Q2 2024, compared to the fiscal second quarter 2023 level of $935 million.
Operating margin is expected to range between 13% and 14%, up from 9.6% in Q2 2023.
For the full fiscal 2024, Abercrombie raised its outlook and now expects net sales to rise by roughly 10% from $4.3 billion in fiscal 2023, an increase from the previous forecast of 4% to 6% growth.
The consensus for full-year sales is $4.58 billion, while the company's guidance implies $4.73 billion.
“Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook,” said Fran Horowitz, Chief Executive Officer of Abercrombie & Fitch.
“Growth was broad-based across regions and brands with Abercrombie brands registering 31% growth and Hollister brands delivering growth of 12%. Strong top-line growth, along with gross profit rate expansion, led to record first quarter operating income and an operating margin of 12.7%.”
