Published on 29 May 2024 on Zacks via Yahoo Finance
Abercrombie (ANF) Stock Rallies on Q1 Earnings & Sales Beat
Abercrombie & Fitch Co. ANF has reported robust first-quarter fiscal 2024 results, with sales and earnings surpassing the Zacks Consensus Estimate and improving year over year. Results have gained from strong growth across regions and brands, mainly led by the Americas region and the Abercrombie brand. The company’s bottom line benefited from significant growth in the operating margin on solid top line growth and gross margin expansion.Abercrombie’s adjusted earnings of $2.14 per share in the fiscal first quarter improved significantly from the 39 cents reported in the year-ago quarter. Moreover, the bottom line beat the Zacks Consensus Estimate of $1.66. The robust earnings performance can be attributed to strong top-line growth, coupled with improved gross and operating profits.Net sales of $1.02 billion advanced 22% year over year on a reported and constant-currency basis, and surpassed the Zacks Consensus Estimate of $952 million. ANF’s comparable sales improved 21%. The top-line beat was led by broad-based net sales growth across regions and brands, mainly on the company’s efforts to offer relevant assortments, compelling marketing and inventory discipline.Following the robust top and bottom-line results in first-quarter fiscal 2024, shares of Abercrombie improved 1.4% in the pre-market trading session on May 29. Shares of this Zacks Rank #2 (Buy) company have gained 16% in the past three months compared with the industry's 4.3% growth.
