Abercrombie & Fitch Co. (ANF) posted strong third-quarter fiscal 2024 results, with sales and earnings surpassing the Zacks Consensus Estimate and showing year-over-year improvements. This marked the seventh consecutive quarter of top and bottom-line beats for the company.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 gross and operating margi ...

Shares of Abercrombie & Fitch (ANF) have gained 5.9% over the past four weeks to close the last trading session at $146.62, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $186 indicates a potential upside of 26.9%.The average comprises six short-term price targets ranging from a low of $147 to a high of $220, with a standard deviation of $25.04. While the lowest estimate indica ...

Financial Data and Key Metrics - Record Q3 net sales of $1.2 billion, up 14% YoY, with comparable sales growth of 16% [9] - Operating income grew 30% YoY to $179 million, with operating margin expanding 170 basis points to 14.8% [9] - Gross profit rate reached 65.1%, the best Q3 gross profit rate since 2010 [12] - Net income per diluted share was $2.50, up 37% from $1.83 in Q3 2023 [42] - EBITDA totaled $219 million or 18% of sales, compared to $171 million or 16% of sales last year [42] Business Line Performance - Abercrombie brands grew 15% in Q3, achieving a record for brand net sales [16] - Hollister brands grew 14% in Q3, with comparable sales growth of 21% [37] - Key categories driving growth included sweaters, dresses, jeans, and fleece [17][21] - Digital channels generated the majority of Abercrombie's business, with strong traffic across both digital and store channels [19][22] Regional Performance - Americas grew 14%, marking the sixth consecutive quarter of double-digit sales growth [14] - EMEA grew 15%, with the UK and Germany leading the way [36] - APAC grew 32%, driven by strong performance in China [14][36] - London team delivered fifth consecutive quarter of double-digit growth in EMEA [15] Strategic Direction and Industry Competition - Company raised full-year sales expectations, now expecting growth of 14%-15%, with an operating margin of around 15% [28][50] - Investments in digital, marketing, and store refreshes are driving growth and customer engagement [19][22][58] - Localized playbooks in EMEA and APAC are delivering strong results, with new store openings planned in Greater London [15][16] - Hollister is expanding its reach within the teen market, with a focus on digital and in-person events [21][22] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the holiday season, citing strong early November performance and well-staffed stores and distribution centers [10][26] - The company is navigating a dynamic shipping market, with proactive use of air shipments to mitigate potential delays [39] - Management highlighted the importance of financial discipline and investments in customer and associate experience [13][29] Other Important Information - Inventory increased 16% YoY, with half of the increase due to mix and unit growth to support Q4 sales, and the other half due to higher freight costs [39] - Marketing expenses were 5.5% of sales, up 100 basis points from Q2 and 50 basis points from last year [41] - The company repurchased $100 million worth of shares in Q3, with $102 million remaining on the current share repurchase authorization [43][44] Q&A Session Summary Question: Hollister's growth trajectory and gender performance [54] - Hollister saw balanced growth across genders and categories, with strong traffic across channels [56] - The brand is expanding its reach in the teen market, with a focus on digital and in-person events [21][22] Question: Drivers of Abercrombie's growth and margin sustainability [62] - Abercrombie achieved 15% growth, driven by balanced performance across genders and categories, with strong product and marketing alignment [63][64] - Management believes the margin profile is sustainable, with a focus on top-line growth and gross margin expansion [66][68] Question: Global brand awareness and holiday momentum [70] - The company is seeing strong global brand awareness, with localized assortments and marketing driving growth in EMEA and APAC [72][73] - Early holiday response has been positive, with well-staffed stores and distribution centers ready for peak selling [74] Question: Gross margin expectations and inventory outlook [71] - Q4 gross margin is expected to be consistent with Q3, with higher freight costs offsetting lower promotions [76] - Inventory is up 16% YoY, with half due to mix and unit growth, and the other half due to higher freight costs [78] Question: Next opportunities for Abercrombie & Fitch [80] - The company has transitioned from a jeans and T-shirt company to a lifestyle brand, with a focus on new categories like YPB and licensing [81][83] - In Europe, the company is reintroducing the Abercrombie brand, with strong growth in the UK and plans for Germany [84] Question: Store count and Hollister's social media strategy [90] - At the end of Q3, the company had 773 stores globally, with 247 Abercrombie stores and 518 Hollister stores [92] - Hollister is using a combination of digital platforms and in-person events to engage with its younger customer base [94][95] Question: Full-year guidance raise and assumptions [97] - The company is more bullish on Q4 sales and profitability, driven by strong back-to-school performance and early holiday momentum [98][99] Question: New store openings and Hollister's comp sales acceleration [101] - New store openings are concentrated in the US, with a focus on Abercrombie & Fitch and Hollister remodels [103] - Hollister's comp sales acceleration was driven by balanced growth across genders and categories, with strong performance in key categories like sweaters and fleece [106][107] Question: AUR outlook and promotion reduction [112] - The company sees opportunities to reduce promotions further, driven by strong product acceptance and inventory levels [113][114] - AUR impact from sales mix across brands and regions is not material [115] Question: Hollister margins and inventory outlook [117] - Hollister margins are strong, with increased productivity driven by strong traffic across channels [118] - Inventory is expected to grow next year to support business growth, with freight costs being a key factor [119] Question: Weather impact and long-term growth sustainability [123] - The company does not rely on weather for business performance, focusing instead on balanced assortments [124] - Long-term growth is supported by a flexible operating model, with strong store performance and global growth opportunities [125][127] Question: Tariff impact and supply chain flexibility [129] - The company has a diversified supply chain, with only 5%-6% of receipts coming from China into the US [130] - The company is prepared to adjust its sourcing strategy if new tariffs are introduced [131]

Tuesday, November 26, 2024It’s a big morning for earnings reports, perhaps the final flurry of retail companies posting results from a mixed — but mostly successful — fiscal Q3 ahead of the opening bell. Pre-market futures are mixed, with the Dow and small-cap Russell 2000 — both coming off record closing highs yesterday — trading lower by -150 points and -9 points, respectively. The S&P 500 is up +13 and the Nasdaq +58.Earnings Report Roundup: M, ANF, DKS, BBYMacy’s (M) shares, however, are trading down -5 ...

For the quarter ended October 2024, Abercrombie & Fitch (ANF) reported revenue of $1.21 billion, up 14.4% over the same period last year. EPS came in at $2.50, compared to $1.83 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.18 billion, representing a surprise of +2.37%. The company delivered an EPS surprise of +7.76%, with the consensus EPS estimate being $2.32.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

Abercrombie & Fitch (ANF) came out with quarterly earnings of $2.50 per share, beating the Zacks Consensus Estimate of $2.32 per share. This compares to earnings of $1.83 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.76%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $2.14 per share when it actually produced earnings of $2.50, delivering a surprise of 16.82%. Over the last four qua ...

An Abercrombie & Fitch store stands in midtown Manhattan on October 24, 2024 in New York City.Abercrombie & Fitch isn't giving up its crown any time soon. The apparel company issued strong holiday guidance on Tuesday after posting its sixth straight quarter of double-digit sales growth and another quarter of results that topped expectations. The recent arrest of the company's former CEO Mike Jeffries for sex trafficking did not appear to affect results.Here's how Abercrombie did in its third fiscal quarter ...

Record third quarter net sales of $1.2 billion, up 14% from last year with comparable sales of 16%Broad-based net sales growth across regions and brands, with Abercrombie brands growth of 15% and Hollister brands growth of 14%Operating margin expands 170 basis points to 14.8%, with third quarter operating income increasing 30% to $179 millionYear-to-date, repurchased 924,000 shares for $130 million, representing 1.8% of shares outstanding at February 3, 2024Increases full year outlook to net sales growth of ...

It's both 'Black Friday' and earnings week for Abercrombie & Fitch (NYSE:ANF). The apparel retailer will announce its latest quarterly report before the open tomorrow, Nov. 26, and the shares are on the rise ahead of the event. ANF was last seen up 3.7% at $157.62, extending last session's 7.4% pop as it heads for a third-straight gain. The stock is trading at its highest levels since mid October, and just broke above recent pressure at the 100-day moving average on Friday. Year to date, the equity is up 79 ...

Abercrombie & Fitch (ANF) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ANF crossed above the 200-day moving average, suggesting a long-term bullish trend.The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a suppo ...