Abercrombie's share price slumped this week despite another strong quarter. (AP Photo/Bebeto ... [+] Matthews, File)Copyright 2017 The Associated Press. All rights reserved. Spare a thought for fashion group Abercrombie & Fitch, which saw its shares plunge Wednesday after the apparel retailer’s CEO raised concerns about the wider retail market against a challenging economic backdrop.Lest we forget, time was when Abercrombie’s stock value didn't need any help in losing ground, scraping along the bottom as th ...

tupungato August 28th was not a very pleasant day for shareholders of clothing company Abercrombie & Fitch (NYSE:ANF). Shares closed down 17% after management announced financial results covering the second quarter of the company's 2024 fiscal year. At first glance, this is surprising. I say this because management reported revenue and earnings per share that came in above what analysts anticipated. However, the market has gotten overly picky with this name, punishing the stock because margins did not c ...

anouchka Abercrombie & Fitch Co. (NYSE:ANF) reported the company's fiscal Q2 results on the 28th of August in pre-market hours. Despite top-of-the-line results that exceeded Wall Street's estimates, the stock has crashed -17% to the results. In my previous article on the stock, I initiated the stock at a Sell rating as the impressive Abercrombie & Fitch brand turnaround was overshadowed by a too tight valuation, especially considering the possible shift in fashion trends that acts as a major risk to the lon ...

Abercrombie & Fitch shares plunged 17% Wednesday after its CEO warned of an “increasingly uncertain environment” ahead — the company’s first mention of a cautious consumer sentiment in four quarters.The sell-off came despite the company raising its annual sales target after reporting better-than-expected quarterly revenue, but investors expected a bigger forecast bump from the high-flying retailer.CEO Fran Horowitz had cautioned that Abercrombie & Fitch might see growth falter in the second half of the year ...

Key TakeawaysAbercrombie & Fitch CEO Fran Horowitz said the clothing retailer continues to operate in "an increasingly uncertain environment."The company beat profit and sales estimates for the second quarter and raised its full-year revenue outlook.Abercrombie shares were down 17% in early-afternoon trading Wednesday. Abercrombie & Fitch (ANF) shares plunged Wednesday after the clothing retailer’s chief executive officer raised concerns about the economy affecting the retail market. CEO Fran Horowitz said ...

Abercrombie & Fitch Co. (ANF) has posted strong second-quarter fiscal 2024 results, with sales and earnings surpassing the Zacks Consensus Estimate and showing year-over-year improvement. This marks the sixth consecutive quarter in which Abercrombie has outperformed top and bottom-line estimates.The strong performance was fueled by substantial growth across regions and brands, especially in the Americas and the Abercrombie brand. The company’s earnings were supported by robust revenue growth, and enhanced g ...

The retailer's fiscal Q2 report had good news for investors -- and some bad news, too.A funny thing happened on the way to the Abercrombie & Fitch (ANF -15.18%) earnings report Wednesday morning. (And to be clear, I mean funny strange -- not funny ha-ha).Reporting on its financial performance for its fiscal Q2, which ended Aug. 3, the teen-centric clothier easily met analysts' consensus forecast for $1.1 billion in revenue, and also reported a $2.50 per share profit, well ahead of the $2.22 that Wall Street ...

Abercrombie & Fitch (ANF) reported $1.13 billion in revenue for the quarter ended July 2024, representing a year-over-year increase of 21.2%. EPS of $2.50 for the same period compares to $1.10 a year ago.The reported revenue represents a surprise of +4.06% over the Zacks Consensus Estimate of $1.09 billion. With the consensus EPS estimate being $2.14, the EPS surprise was +16.82%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Financial Data and Key Metrics Changes - The company reported record net sales of $1.1 billion for Q2 2024, representing a 21% increase compared to the previous year, with an operating margin of 15.5% [6][18] - Operating income reached $176 million, nearly double the $90 million reported in Q2 2023, with net income per diluted share increasing to $2.50 from $1.10 [22][23] - Gross profit margin improved to 64.9%, up 240 basis points from 62.5% in the prior year, driven by lower cotton costs and improved product acceptance [21][22] Business Line Data and Key Metrics Changes - Abercrombie brands achieved a net sales growth of 26%, maintaining the same growth rate as Q2 2023, with strong performance in seasonal categories [12][20] - Hollister brands saw a 17% increase in net sales, up from 12% growth in Q1, with balanced growth across men's and women's categories [14][20] Market Data and Key Metrics Changes - The Americas region led with a 23% increase in net sales, consistent with Q1, while EMEA grew by 16% and APAC by 3% [10][19] - In EMEA, the UK and Germany showed significant growth, marking the first time in over a decade that the region demonstrated growth on growth [11][20] Company Strategy and Development Direction - The company is focused on sustainable profitable growth, raising full-year sales growth expectations to 12% - 13% from a previous estimate of around 10% [27][28] - Investments are being made in marketing, digital, technology, and infrastructure to support long-term growth, with a strong emphasis on customer engagement and brand localization [17][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic consumer environment, highlighting the strength of the brand portfolio and the effectiveness of their operational playbook [8][17] - The outlook for Q3 includes expectations for low double-digit sales growth, with operating margins projected between 13% and 14% [26][28] Other Important Information - The company ended the quarter with cash and equivalents of $738 million and liquidity of approximately $1.2 billion, having fully redeemed senior secured notes [23][24] - The company plans to prioritize share repurchases in the back half of the year, subject to business performance and market conditions [24] Q&A Session Summary Question: Insights on back-to-school selling season and AUR growth - Management noted strong AUR growth across both brands, driven by product acceptance and inventory control [31][32] Question: Clarification on operating margin guidance for Q3 - Management indicated that the guidance reflects a balance of freight costs and ongoing investments in marketing and infrastructure [33][34] Question: Growth vectors for Abercrombie brand - Management highlighted the success of the Wedding Shop and NFL partnership as key growth drivers, with a focus on customer insights [36][38] Question: Digital channel performance - The digital channel has shown double-digit comp growth, supported by investments in customer experience [40] Question: Sales progression throughout the quarter - Sales showed double-digit growth each month in Q2, with positive momentum continuing into Q3 [51][52] Question: Clearance inventory levels and promotional cadence - Clearance levels are lower than in the past, with a focus on maintaining lean inventory and adjusting promotions based on business performance [70][75] Question: Freight costs outlook - Freight costs are expected to remain elevated, impacting gross margins, with management monitoring the situation closely [66][71]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...